<PAGE>   1
                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549
                                    FORM 10-Q


(MARK ONE)
[X]               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 1999

                                       OR

[ ]               TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES EXCHANGE ACT OF 1934

            For the transition period from ___________ to __________


                          Commission File No. 33-94724


                            JERRY'S FAMOUS DELI, INC.
             (Exact name of registrant as specified in its charter)


          California                                   95-3302338
-------------------------------            -----------------------------------
(State or Other Jurisdiction of            (I.R.S. Employer Identification No.)
Incorporation or Organization)


        12711 Ventura Boulevard, Suite 400, Studio City, California 91604
        -----------------------------------------------------------------
                    (Address of Principal Executive Offices)


                                 (818) 766-8311
              ----------------------------------------------------
              (Registrant's Telephone Number, Including Area Code)



              -----------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES X NO ___


                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. As of July 15, 1999,
outstanding common shares totaled 14,049,202
<PAGE>   2

                            JERRY'S FAMOUS DELI, INC.

                                      INDEX

<TABLE>
<CAPTION>

                                                                                                     Page
                                                                                                    Number
                         PART I - FINANCIAL INFORMATION

<S>      <C>                                                                                        <C>
Item 1.  Consolidated Financial Statements

         Consolidated Balance Sheets as of June 30, 1999 and December 31, 1998.................        2

         Consolidated Statements of Operations for the Three Months and Six Months Ended
         June 30, 1999 and June 30, 1998.......................................................        3

         Consolidated Statements of Cash Flows for the Six Months Ended
         June 30, 1999 and June 30, 1998.......................................................        4

         Notes to Consolidated Financial Statements............................................        5

Item 2.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

         General ..............................................................................        7

         Results of Operations.................................................................        8

         Liquidity and Capital Resources.......................................................        9


Item 3.  Quantitative and Qualitative Disclosure About Market Risk.............................        9

                           PART II - OTHER INFORMATION

Items 1. through 6.............................................................................       10


Signatures.....................................................................................       11
</TABLE>


                                       1

<PAGE>   3

                            JERRY'S FAMOUS DELI, INC.
                           CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>

                                                                   JUNE 30,         DECEMBER 31,
                                                                     1999               1998
                                                                 -----------        ------------
                                                                 (unaudited)
<S>                                                              <C>                <C>
ASSETS

Current assets
   Cash and cash equivalents                                     $   527,664        $   985,382
   Accounts receivable, net                                          269,617            424,400
   Inventory                                                       1,326,433          1,394,899
   Prepaid expenses                                                  440,429            449,737
   Deferred income taxes                                             269,327            269,327
   Prepaid income taxes                                               58,421            267,321
                                                                 -----------        -----------
              Total current assets                                 2,891,891          3,791,066

Property and equipment, net                                       29,304,562         33,534,787

Deferred income taxes                                                629,801            629,801
Goodwill and covenants not to compete                              9,445,678          9,701,723
Other assets                                                       1,249,222          1,335,331
                                                                 -----------        -----------
           Total assets                                          $43,521,154        $48,992,708
                                                                 ===========        ===========


LIABILITIES AND EQUITY

Current liabilities
   Accounts payable                                              $ 2,596,581        $ 3,099,839
   Accrued expenses                                                1,176,412          1,411,457
   Sales tax payable                                                 196,317            421,897
   Current portion of long-term debt                               2,337,790          1,279,371
                                                                 -----------        -----------
            Total current liabilities                              6,307,100          6,212,564

Long-term debt                                                    10,570,797         15,908,582
Deferred rent                                                        457,151            457,525
                                                                 -----------        -----------
           Total liabilities                                      17,335,048         22,578,671

Minority interest                                                    601,236            554,899

Equity
   Preferred stock Series A, no par, 5,000,000 shares
     authorized, no shares issued or outstanding at
     June 30, 1999 or at December 31, 1998                                -

   Common stock, no par value, 60,000,000 shares
     authorized, 14,061,202  and 14,508,902 issued and
     outstanding at June 30, 1999 and December 31, 1998,
     respectively                                                 24,621,273         25,271,737
    Equity                                                           963,597            587,401
                                                                 -----------        -----------
          Total equity                                            25,584,870         25,859,138
                                                                 -----------        -----------
           Total liabilities and equity                          $43,521,154        $48,992,708
                                                                 ===========        ===========
</TABLE>

                   The accompanying notes are an integral part
                  of these consolidated financial statements.


                                       2
<PAGE>   4

                            JERRY'S FAMOUS DELI, INC.

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)

<TABLE>
<CAPTION>

                                                 THREE MONTHS ENDED JUNE 30,      SIX MONTHS ENDED JUNE 30,
                                                    1999            1998            1999            1998
                                                ------------    ------------    ------------    ------------

<S>                                             <C>             <C>             <C>             <C>
Revenues                                        $ 16,760,902    $ 16,094,831    $ 36,348,295    $ 30,359,516
Cost of sales                                      5,828,203       5,339,797      12,650,885       9,723,981
                                                ------------    ------------    ------------    ------------
   Gross profit                                   10,932,699      10,755,034      23,697,410      20,635,535

Operating expenses
 Labor                                             6,296,216       5,226,873      13,158,966      10,379,460
 Occupancy and other                               2,240,217       2,162,817       4,655,152       4,221,115
 Occupancy - related party                           277,129         256,535         537,115         417,053
General and administrative expenses                1,174,913       1,454,811       2,391,038       2,551,465
Depreciation                                         667,308         921,351       1,373,277       1,778,105
Amortization                                         177,330         196,330         342,402         307,397
                                                ------------    ------------    ------------    ------------
             Total expenses                       10,833,113      10,218,717      22,457,950      19,654,595
                                                ------------    ------------    ------------    ------------
  Income from operations                              99,586         536,317       1,239,460         980,940

Other income (expense)
 Interest income                                       6,700          18,477          12,545          35,559
 Interest expense                                   (307,084)       (370,156)       (666,043)       (562,728)
 Other income (expense), net                          (2,548)            287          (2,548)            287
                                                ------------    ------------    ------------    ------------
  Income (loss) before provision (benefit)
  for income taxes and minority interest            (203,346)        184,925         583,414         454,058

Provision (benefit) for income taxes                 (95,087)         50,091         110,900         108,474
Minority interest                                     24,925          26,430          92,707          52,302
                                                ------------    ------------    ------------    ------------
Income (loss) before cumulative effect of
  change in accounting principle                    (133,184)        108,404         379,807         293,282
Cumulative effect of change in accounting
principle, net of tax benefit of $65,162                  --              --              --        (132,299)
                                                ------------    ------------    ------------    ------------

Net income (loss)                               $   (133,184)   $    108,404    $    379,807    $    160,983
                                                ============    ============    ============    ============

Net income (loss) per share before cumulative
  effect of change in accounting principle
  applicable to common stock - Basic and
  Diluted                                       $      (0.01)   $       0.01    $       0.03    $       0.02
Cumulative effect of change in accounting
  principle - Basic and Diluted                           --              --              --           (0.01)
                                                ------------    ------------    ------------    ------------
Net income (loss) per share applicable to
  common stock - Basic and Diluted              $      (0.01)   $       0.01    $       0.03    $       0.01
                                                ============    ============    ============    ============
Weighted average shares
  outstanding - Basic                             14,111,619      15,144,664      14,281,694      15,144,664
                                                ============    ============    ============    ============
Weighted average shares
  outstanding - Diluted                           14,136,767      15,212,901      14,306,842      15,246,076
                                                ============    ============    ============    ============
</TABLE>



              The accompanying notes are an integral part of these
                       consolidated financial statements.



                                       3
<PAGE>   5

                            JERRY'S FAMOUS DELI, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)


<TABLE>
<CAPTION>

                                                                               SIX MONTHS ENDED JUNE 30,
                                                                                1999                 1998
                                                                           -------------       -------------
<S>                                                                        <C>                 <C>
Cash flows from operating activities:
   Net income                                                              $     379,807       $     160,983
                                                                           -------------       -------------
   Adjustments to reconcile net income to net cash provided by
      operating activities:
      Cumulative effect of change in accounting principle                            -               132,299
      Depreciation                                                             1,373,277           1,778,105
      Amortization                                                               342,402             307,397
      Minority interest                                                           92,707              52,302
      Deferred income taxes                                                            -             (58,648)
      Deferred rent                                                                 (374)                  -
Changes in assets and liabilities:
         Accounts receivable                                                     154,783             (44,770)
         Inventory                                                                68,466            (120,150)
         Prepaid expenses                                                          9,308           1,158,142
         Prepaid income taxes                                                    208,900              24,605
         Preopening costs                                                              -            (222,693)
         Other assets                                                            (21,863)           (130,719)
         Accounts payable                                                       (503,258)          1,630,418
         Accrued expenses                                                       (235,045)           (312,892)
         Sales tax payable                                                      (225,580)           (210,238)
                                                                           -------------       -------------
            Total adjustments                                                  1,263,723           3,983,158
                                                                           -------------       -------------
            Net cash provided by operating activities                          1,643,530           4,144,141
                                                                           -------------       -------------

Cash flows from investing activities:
   Purchase of Epicure Market                                                         -           (8,504,323)
   Acquisition of restaurant                                                          -           (1,760,000)
   Net proceeds from sale of Pasadena facility                                3,913,244                    -
   Additions to equipment                                                      (492,941)            (404,950)
   Additions to improvements - land, building and leasehold                    (698,883)            (346,692)
   Deductions (additions) to construction-in-progress                           153,532           (1,107,251)
                                                                          -------------        -------------
            Net cash provided by (used in) investing activities               2,874,952          (12,123,216)
                                                                          -------------        -------------
Cash flows from financing activities:
   Borrowings on credit facilities                                              560,000            6,965,000
   Payments on long-term debt                                                (4,839,366)            (450,631)
   Dividends paid to minority shareholders                                      (46,370)             (45,093)
   Purchase of Company's common stock                                          (650,464)                  -
                                                                          -------------        -------------

            Net cash provided by (used in) financing activities              (4,976,200)          6,469,276
                                                                           -------------       -------------
            Net decrease in cash and cash equivalents                          (457,718)         (1,509,799)

Cash and cash equivalents, beginning of period                                  985,382           2,264,308
                                                                           -------------        ------------
Cash and cash equivalents, end of period                                   $    527,664        $    754,509
                                                                           =============        ============
</TABLE>




        The accompanying notes are an integral part of these consolidated
                             financial statements.


                                       4
<PAGE>   6




                            JERRY'S FAMOUS DELI, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS






1.   BASIS OF PRESENTATION AND ORGANIZATION:

Basis of Presentation

     The accompanying consolidated financial statements of Jerry's Famous Deli,
Incorporated and its subsidiaries ("the Company") for the three and six months
ended June 30, 1999 and June 30, 1998 have been prepared in accordance with
generally accepted accounting principles and with the instructions to Form 10-Q
and Article 10 of Regulation S-X. These financial statements have not been
audited by independent accountants, but include all adjustments (consisting of
normal recurring adjustments) which are, in Management's opinion, necessary for
a fair presentation of the financial condition, results of operations and cash
flows for such periods. However, these results are not necessarily indicative of
results for any other interim period or for the full year. The December 31, 1998
consolidated balance sheet is derived from the audited consolidated financial
statements included in the Company's December 31, 1998 Form 10-K.

     Certain information and footnote disclosures normally included in financial
statements in accordance with generally accepted accounting principles have been
omitted pursuant to requirements of the Securities and Exchange Commission.
Management believes that the disclosures included in the accompanying interim
financial statements and footnotes are adequate to make the information not
misleading, but should be read in conjunction with the consolidated financial
statements and notes thereto included in the Company's Form 10-K for the
preceding fiscal year.

Organization

     The accompanying consolidated financial statements consist of Jerry's
Famous Deli, Incorporated ("JFD--Inc."), a California corporation, JFD--Encino
("JFD--Encino"), a California limited partnership and National Deli Corporation,
("NDC"), a Florida corporation and wholly-owned subsidiary of JFD--Inc.
JFD--Inc. and JFD--Encino operate family oriented, full-service restaurants. NDC
operates The Epicure Market ("Epicure"), a specialty gourmet food store located
in Miami Beach, Florida. These entities are collectively referred to as "Jerry's
Famous Deli, Inc." or the "Company."

     JFD--Inc. and JFD--Encino include the operations of the Southern California
restaurants located in Studio City, Encino, Marina del Rey, West Hollywood,
Pasadena, Westwood, Sherman Oaks, Woodland Hills, and Costa Mesa. JFD--Inc.also
includes the two Rascal House restaurants located in Miami Beach and Boca Raton,
Florida.

Reclassification

     Certain amounts in the previously presented financial statements have been
reclassified to conform to the current period presentation.



2.   SUPPLEMENTAL CASH FLOW INFORMATION
<TABLE>
<CAPTION>

                                                                         Six Months Ended June 30,
                                                                            1999           1998
                                                                         ---------      ----------
Supplemental cash flow information:
   Cash paid for:
<S>                                                                      <C>            <C>
      Interest .................................................         $ 335,000      $  588,000
      Income taxes .............................................             2,000      $  236,000

Supplemental information on noncash investing and financing activities:
      Common Stock issued in purchase of Epicure................         $     -        $2,395,147
</TABLE>



                                       5
<PAGE>   7

                            JERRY'S FAMOUS DELI, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




3.   NET INCOME PER SHARE

     In accordance with Statement of Financial Accounting Standards ("SFAS") No.
128, "Earnings Per Share," basic net income per share is computed by dividing
the net income attributable to common shareholders by the weighted average
number of common shares outstanding during the period. Diluted net income per
common share is computed by dividing the net income attributable to common
shareholders by the weighted average number of common and common share
equivalents outstanding during the period. Common share equivalents included in
the diluted computation represent shares issuable upon assumed exercise of stock
options using the treasury stock method.


4.   IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS

     In April 1998, the American Institute of Certified Public Accountants
("AICPA") issued Statement of Position ("SOP") 98-5 entitled "Reporting on the
Costs of Start-Up Activities." SOP 98-5 requires entities to expense as incurred
all start-up and preopening costs that are not otherwise capitalizable as
long-lived assets. Restatement of the previously issued financial statements is
not permitted by SOP 98-5, and entities are not required to report the pro forma
effects of the retroactive application of the new accounting standard. The
Company's early adoption of this new accounting principle in 1998 resulted in
the recognition of the cumulative effect of the change in accounting principle
as a one-time charge against earnings of $132,299, net of related income tax
benefit of $65,162, recorded as of January 1, 1998. Thus, the Consolidated
Statement of Operations and the Consolidated Statement of Cash Flows for the six
months ended June 30, 1998 have been restated to reflect the change.


5.   SALE OF PASADENA PROPERTY

     The Company closed escrow on the sale of its Pasadena facility at the close
of business on May 2, 1999. The gross proceeds from the sale were $4,120,000
which resulted in no significant gain or loss. Of these proceeds, approximately
$3,750,000 was used to reduce the Company's debt and the remaining proceeds were
applied to other related costs of the sale.





                                       6
<PAGE>   8

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS





GENERAL

     The following table presents for the three and six months ending June 30,
1999 and 1998, the Consolidated Statements of Operations of the Company
expressed as percentages of total revenue. The results of operations for the
first six months of 1999 are not necessarily indicative of the results to be
expected for the full year ending December 31, 1999.

<TABLE>
<CAPTION>
                                                    PERCENTAGE OF TOTAL REVENUE
                                              ---------------------------------------
                                              THREE MONTHS ENDED     SIX MONTHS ENDED
                                                    JUNE 30,              JUNE 30,
                                              -------------------     ---------------
                                               1999          1998     1999       1998
                                              -----         -----     -----     -----
<S>                                           <C>           <C>       <C>       <C>
Revenues                                      100.0%        100.0%    100.0%    100.0%

Cost of sales
  Food                                         33.6          31.2      33.7      30.1
  Other                                         1.2           2.0       1.1       1.9
                                              -----         -----     -----     -----
Total cost of sales                            34.8          33.2      34.8      32.0
                                              -----         -----     -----     -----

Gross profit                                   65.2          66.8      65.2      68.0

Operating expenses

  Labor                                        37.6          32.5      36.2      34.2

  Occupancy and other                          15.0          15.0      14.3      15.3
                                              -----         -----     -----     -----

        Total operating expenses               52.6          47.5      50.5      49.5

General and administrative expenses             7.0           9.0       6.6       8.4

Depreciation and amortization expense           5.1           7.0       4.7       6.9
                                              -----         -----     -----     -----
        Total expenses                         64.7          63.5      61.8      64.8
                                              -----         -----     -----     -----

Income from operations                          0.5           3.3       3.4       3.2

Interest income                                 0.0           0.1       0.0       0.1
Interest expense                               (1.8)         (2.3)     (1.8)     (1.8)
Other income, net                               0.0           0.0       0.0       0.0
                                              -----         -----     -----     -----

Income (loss) before provision for income
  taxes and minority interest                  (1.3)          1.1       1.6       1.5

Provision (benefit) for income taxes           (0.6)          0.3       0.3       0.3
Minority interest                               0.1           0.1       0.3       0.2
                                              -----         -----     -----     -----

Income (loss) before cumulative effect of
  change in accounting principle               (0.8)          0.7       1.0       1.0
Cumulative effect of change in accounting
  principle                                      --            --        --       0.4
                                              -----         -----     -----     -----
        Net income (loss)                      (0.8)%         0.7%      1.0%      0.6%
                                              =====         =====     =====     =====
</TABLE>


                                       7
<PAGE>   9


RESULTS OF OPERATIONS


Three Months Ended June 30, 1999 Compared to Three Months Ended June 30, 1998

     Revenues for the three months ended June 30, 1999 increased approximately
$666,000, or 4.1%, to approximately $16,761,000 for the 1999 quarter from
approximately $16,095,000 for the 1998 quarter. The Rascal House restaurant in
Boca Raton, Florida, opened July 1, 1998, contributed revenues of approximately
$1,089,000 for the 1999 period. In addition, same store sales for the eight
Southern California stores in operation since April 1, 1998 increased
approximately $368,000, or 3.8% for the 1999 period. The combined increase was
primarily offset by a decrease in sales of approximately $132,000 for the other
Rascal House restaurant in Miami Beach, Florida, a decrease in sales of
approximately $463,000 related to the sale of the Pasadena restaurant, which was
sold on May 2, 1999, and a decrease in revenues of approximately $236,000 for
The Epicure Market. Management attributes the decrease in sales in the Florida
area primarily due to increased competition. To address the above decreases, the
Company believes additional marketing of its restaurants and specific products,
consistent with other casual dining and fast food restaurants, will have a
positive effect on same store sales.

     Cost of sales, as a percentage of revenues, increased 1.6 percentage points
to 34.8% for the 1999 quarter from 33.2% for the 1998 quarter. Total food cost
which comprises over 96% of cost of sales increased 2.4 percentage points to
33.6% for 1999 from 31.2% for 1998. This increase is partially a result of the
opening of the Boca store. The Rascal House restaurants operate with a higher
food cost percentage than the stores in California. The Company's other
components of cost of sales decreased 0.8% mainly as a result of more efficient
buying.

     Operating expenses, which include all restaurant level operating costs,
including, but not limited to, labor, rent, laundry, maintenance, utilities and
repairs, as a percentage of revenues, increased 5.1 percentage points to 52.6%
for the 1999 quarter from 47.5% for the 1998 quarter. Labor increased 5.1
percentage points to 37.6% for 1999 from 32.5% for 1998. Contributing to this
increase is the higher labor costs associated with the Boca restaurant, which
opened in July 1998, although all the Company's restaurants experienced
increased labor costs. Management is taking several steps to control such costs,
of which one is the implementation of an incentive program for restaurant
managers which is based on a reduction of food and labor costs.


     General and administrative expenses, as a percentage of revenues, decreased
2.0 percentage points, to 7.0% for the 1999 quarter from 9.0% in the 1998
quarter. This decrease is partly due to reclassification of certain expenses at
the Epicure store and partly a result of reduction in personnel employed at the
Company's corporate headquarters.

     Depreciation and amortization expense, as a percentage of revenue,
decreased 1.9 percentage points to 5.1% for 1999 from 7.0% for the 1998 quarter.
Depreciation expense decreased approximately $254,000 for the 1999 quarter as
compared to the 1998 quarter, which was primarily the result of the change in
life of certain restaurant equipment and furniture and fixtures from a five-year
useful life to an eight-year useful life, coupled with the sale of the Pasadena
restaurant.

     The decrease in interest expense of approximately $63,000 to approximately
$307,000 for the 1999 second quarter from approximately $370,000 for the same
1998 period, resulted from approximately $17,000 less in interest expense due to
the sale of the Pasadena store and a lower interest rate on the credit
facilities utilized in the purchase of Epicure on April 1, 1998.


Six Months Ended June 30, 1999 Compared to Six Months Ended June 30, 1998

     Revenues increased approximately $5,988,000, or 19.7%, to approximately
$36,348,000 for the 1999 six-month period from approximately $30,360,000 for the
1998 six-month period. Epicure, acquired on April 1, 1998, contributed increased
revenues of approximately $3,741,000 in 1999. The Boca restaurant, which opened
in July 1, 1998, contributed revenues of approximately $2,753,000 to the 1999
period. The Rascal House restaurant in Miami Beach, Florida had decreased
revenues of approximately $412,000, for the 1999 period, which is mostly due to
the opening of the Boca store and increased competition. Revenues for the same
eight Southern California restaurants operated during both six-month periods,
increased approximately $378,000, or 1.9%.

                                       8
<PAGE>   10

     Cost of sales, as a percentage of revenues, increased 2.8 percentage
points, to 34.8% for the 1999 period from 32.0% for the 1998 period. The
majority of these increases are attributable to the reasons discussed in
quarter-to-quarter comparison.

     Labor expense, as a percentage of revenues, increased 2.0 percentage
points, to 36.2% in 1999 from 34.2% for 1998, primarily due to the same factors
as those discussed above with respect to the second quarter.

     General and administrative expenses, as a percentage of revenues, decreased
1.8 percentage point to 6.6% for 1999 from 8.4% for 1998 due to the reasons
discussed above in the quarter-to-quarter analysis.

     Depreciation and amortization expense, as a percentage of revenues,
decreased 2.2 percentage point to 4.7% in 1999 from 6.9% in the 1998 period,
mostly due to the same factors as those discussed above with respect to the
second quarter.

     Interest expense increased approximately $103,000 mostly due to the
increase in expense on the credit facility as a result of the purchase of
Epicure. This increase was partially offset by the decrease in debt from the
proceeds of the sale of the Pasadena restaurant.


LIQUIDITY AND CAPITAL RESOURCES

     The Company's capital requirements are primarily for the development,
construction and equipping of new restaurants. Generally, the Company leases the
property and extensively remodels the existing building. The cost of renovation
will depend upon the style of restaurant being converted. Renovation of Jerry's
Famous Deli restaurants have cost between $2 million and $3 million per
location, or $267 to $400 per square foot. In addition, the Company spent
approximately $650,000 pursuant to the Company's stock repurchase program.

     In September 1998, the Company entered into a $15,000,000 credit facility
with BankBoston, N.A. in the form of a $9,000,000 term loan and $6,000,000
revolving line of credit. In conjunction with the agreement, the Company repaid
certain existing debt with the proceeds from the term loan. The term loan and
the revolver mature five years from inception and bear interest at the
Eurodollar rate plus a variable percentage margin totaling approximately 7.5% at
June 30, 1999. The debt is collateralized by assets of the Company and includes
certain financial covenants. The Company utilized approximately $560,000 of the
credit line in conjunction with the repurchase of approximately $650,000 of its
Common Stock during the six months period ended June 30, 1999. In addition,
approximately $3,750,000 from the proceeds of the sale of the Pasadena facility
was used to reduce the Company's debt.

     Management believes that cash on hand, including cash drawn on the line of
credit, proceeds from the sale of the Pasadena facility and cash flows from
operations will be sufficient for operation of the Company's existing
restaurants and market. Future anticipated capital needs, primarily for
development or acquisition of new restaurants, cannot be projected with
certainty. Additional capital expenditures will be required as new locations are
added. The Company generally intends to seek leased locations.


     Statements made herein that are not historical facts are forward looking
statements and are subject to a number of risk factors, including the public's
acceptance of the Jerry's Famous Deli format in each new location, consumer
trends in the restaurant industry, competition from other restaurants, the costs
and delays experienced in the course of remodeling or building new restaurants,
the amount and rate of growth of administrative expenses associated with
building the infrastructure needed for future growth, the availability, amount,
type and cost of financing for the Company and general economic conditions and
other factors. Further information on these and other factors is contained in
the Company's Annual Report on Form 10-K for the year ended December 31, 1998
and its other reports filed with the Securities and Exchange Commission.

Item 3.     Quantitative and Qualitative Disclosure About Market Risk.

         Not applicable.

                                       9
<PAGE>   11




                           PART II - OTHER INFORMATION


Items 1. through 3.   Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders.

     On May 25, 1999, the Company held its Annual Meeting of Shareholders.
Shareholders voted upon the election of directors and upon the ratification of
PricewaterhouseCoopers LLP, as the Company's independent public accountants for
the fiscal year ending December 31, 1999. Isaac Starkman, Guy Starkman, Jason
Starkman, Paul Gray, Stanley Schneider and Kenneth Abdalla, all of whom were
directors prior to the Annual Meeting and were nominated by management for
re-election, were re-elected at the meeting. The following votes were cast for
each nominees:

<TABLE>
<CAPTION>
                                                               Authority
                       Name                     For             Withheld
                       ----                     ---            ---------
<S>                                         <C>                 <C>
                  Isaac Starkman            13,171,603          162,580
                  Guy Starkman              13,171,603          162,580
                  Jason Starkman            13,171,603          162,580
                  Paul Gray                 13,171,603          162,580
                  Stanley Schneider         13,171,603          162,580
                  Kenneth Abdalla           13,171,603          162,580
</TABLE>

     The following votes were cast for the ratification of
PricewaterhouseCoopers LLP as the Company's independent public accountants for
the fiscal year ending December 31, 1999: For: 13,242,864; Against: 83,669;
Abstain: 7,650.

     Shareholders who wish to submit proposals to be included in the Company's
proxy materials for the 2000 annual meeting may do so in accordance with
Securities and Exchange Commission Rule 14a-8. For those shareholder proposals
which are not submitted in accordance with Rule 14a-8, the Company's management
proxies may exercise their discretionary voting authority, without any
discussion of the proposal in the Company's proxy materials, for any proposal
which is received by the Company after January 5, 2000.

Items 5 and 6.  Not applicable.





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<PAGE>   12
                                   SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                               JERRY'S FAMOUS DELI, INC.



Date:   August 13, 1999        By:      /s/   Isaac Starkman
                                  -------------------------------------------
                                      Isaac Starkman
                                      Chief Executive Officer and Chairman
                                      of the Board of Directors



                               By:      /s/  Christina Sterling
                                  --------------------------------------------
                                      Christina Sterling
                                      Chief Financial Officer


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