U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                  ------------

                                   FORM 10-QSB


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

                 For the quarterly period ended March 26, 2000

                                       OR

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

                         Commission File Number 0-27148

                    New World Coffee - Manhattan Bagel, Inc.
           (Name of small business issuer as specified in its charter)

               Delaware                                         13-3690261
       (State or other jurisdiction                         (I.R.S. Employer
       of Incorporation or organization)                    Identification No.)

                             246 Industrial Way West
                               Eatontown, NJ 07724
          (Address of principal executive offices, including zip code)

                                 (732) 544-0155
                           (Issuer's telephone number)


     Check 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 past 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 _____

     Transitional  small business  disclosure format ( check one):

                                  Yes _____ No __X__



    Number of shares of common stock, $.001 par value per share, outstanding:
                          As of May 1, 2000: 11,532,220



<PAGE>



                    NEW WORLD COFFEE - MANHATTAN BAGEL, INC.

              INDEX TO FINANCIAL STATEMENTS AND FINANCIAL SCHEDULES

                                 MARCH 26, 2000
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                                                                                                          Page

PART I.  FINANCIAL INFORMATION

         Item 1.  Financial Statements

         Condensed Consolidated Balance Sheets as of March 26, 2000 and
                  December 26, 1999..............................................................         -3-

         Condensed Consolidated Statements of Operations for the three months
                  ended March 26, 2000 and March 28, 1999........................................         -4-

         Condensed Consolidated Statements of Cash Flows for the three months
                  ended March 26, 2000 and March 28, 1999........................................         -5-

         Notes to Consolidated Financial Statements..............................................         -6-


Item 2.  MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 26, 2000.........................         -8-



PART II:  OTHER INFORMATION......................................................................        -11-

          SIGNATURES.............................................................................        -12-

</TABLE>


<PAGE>





                    NEW WORLD COFFEE - MANHATTAN BAGEL, INC.

                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<S>                                                                            <C>                     <C>



                                                                                    March 26,             December 26,
                                                                                      2000                   1999
                                                                                  ------------         ---------------
ASSETS                                                                            (Unaudited)
Current Assets:
    Cash and cash equivalents...................................               $     2,351,378         $     2,880,342
    Franchise and other receivables, net........................                     2,283,207               2,011,398
    Current maturities of notes receivables.....................                     1,959,454               1,959,454
    Inventories.................................................                     2,043,790               1,845,354
    Prepaid expenses and other current assets...................                       272,114                 275,694
    Deferred income taxes                                                              500,000                 500,000
    Assets held for resale......................................                     1,559,580               1,595,036
                                                                                     ---------               ---------
       Total current assets.....................................                    10,969,523              11,067,278

Property, plant and equipment, net..............................                     6,761,658               7,017,513
Notes and other receivables, net................................                     1,058,328               1,143,073
Trademarks, net.................................................                    15,852,148              15,988,993
Goodwill, net...................................................                     2,286,303               2,312,645
Deferred income taxes                                                                6,000,000               6,000,000
Deposits and other assets.......................................                       492,510                 495,296
                                                                                       -------                 -------
       Total Assets                                                            $    43,420,470         $    44,024,798
                                                                               ===============         ===============



LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
    Accounts payable............................................               $     2,059,117         $     2,014,703
    Accrued expenses............................................                     3,335,563               4,554,880
    Current portion of long-term debt...........................                     2,840,492               2,840,492
    Current portion of obligations under capital leases.........                       184,864                 163,359
    Other current liabilities                                                            2,458                  49,642
                                                                                         -----                  ------
       Total current liabilities................................                     8,422,494               9,623,076

Long-term debt..................................................                    15,539,181              15,557,416
Obligations under capital leases................................                        88,345                 230,692
Deferred rent...................................................                       227,321                 227,065
Other liabilities...............................................                     5,958,600               6,014,784
Stockholders' equity:
    Preferred stock, $.001 par value; 2,000,000
       shares authorized; 0 issued and outstanding..............                             -                       -
     Series A convertible preferred stock, $.001 par value; 400
       shares authorized; 0 shares issued and outstanding                                                            -
    Series B convertible preferred stock, $.001 par value;
       225 Shares authorized, 0 shares outstanding..............                             -                       -
    Common stock, $.001 par value; 50,000,000 shares
       Authorized; 11,438,346 and 11,313,508 shares
       issued and outstanding...................................                        11,438                  11,314
    Additional paid-in capital..................................                    34,868,724              34,706,849
    Accumulated deficit.........................................                  (21,695,633)            (22,346,398)
                                                                                  ------------            ------------
       Total stockholders' equity...............................                    13,184,529              12,371,765
                                                                                    ----------              ----------
       Total liabilities and stockholders' equity...............               $    43,420,470         $    44,024,798
                                                                               ===============         ===============
</TABLE>


<PAGE>


                    NEW WORLD COFFEE - MANHATTAN BAGEL, INC.

                      CONSOLIDATED STATEMENTS OF OPERATIONS

          FOR THE FIRST QUARTER ENDED MARCH 26, 2000 AND MARCH 28, 1999

                                    UNAUDITED

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<S>                                                             <C>                    <C>





                                                                    March 26,              March 28,
                                                                      2000                  1999
                                                                -------------         --------------
Revenues:

    Manufacturing revenues.................................     $   6,150,638         $   6,044,207
    Franchise related revenues.............................         1,774,944             1,205,628
    Retail sales...........................................         1,220,500             2,330,002
                                                                    ---------             ---------
Total revenues.............................................         9,146,082             9,579,837

    Cost of sales..........................................         5,860,051             6,892,180
    General and administrative expenses....................         1,585,173             1,511,171
    Depreciation and amortization..........................           571,915               542,714
                                                                      -------               -------
Income from operations.....................................         1,128,943               633,772

Interest expense, net......................................           478,178               290,889
                                                                      -------               -------

Net income.................................................          $650,765              $342,883
                                                                     ========              ========



Net income per common share - Basic                                 $     .06             $     .03
                                                                    =========             =========

Net income per common share - Diluted                               $     .06             $     .03
                                                                    =========             =========

Weighted average number of common shares outstanding:
     Basic                                                         11,386,777             9,907,587
                                                                   ==========             =========
     Diluted                                                       11,684,286            10,163,443
                                                                   ==========            ==========
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<PAGE>


                    NEW WORLD COFFEE - MANHATTAN BAGEL, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

          FOR THE FIRST QUARTER ENDED MARCH 26, 2000 AND MARCH 28, 1998

                                    UNAUDITED
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<S>                                                                          <C>                <C>



                                                                             March 26,          March 28,
                                                                               2000                1999

CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income............................................................      $650,765         $342,883
    Adjustments to reconcile net income to net cash used in
       operating activities:
        Depreciation and amortization.....................................       571,915          542,714
        Gain on sale of fixed assets......................................             -        (219,585)
    Increase/(decrease) in cash as a result of changes in  operating  assets
              and liabilities:
        Receivables                                                            (271,807)        (697,731)
        Inventories                                                            (198,435)        (124,289)
        Prepaid expenses                                                           3,580           51,664
        Deposits and other assets                                                  2,785          193,506
        Receipts of notes receivable                                              84,745          171,095
        Additions to notes receivable                                                  -         (57,500)
        Accounts payable                                                          44,415          242,279
        Accrued expenses                                                       (424,302)      (1,358,732)
        Deferred rent                                                                256            7,514
        Other liabilities                                                      (110,558)        (157,587)
                                                                               ---------        ---------
                    Net cash provided by/(used in) operating activities....      353,359      (1,063,769)
                                                                                 -------      -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Capital expenditures...................................................    (101,975)        (325,070)
    Addition to assets held for resale                                          (15,437)                -
    Proceeds from the sale of fixed assets                                             -          452,935
                                                                               ---------          -------
                    Net cash provided by/(used in) investing activities....    (117,412)          127,865
                                                                               ---------          -------



CASH FLOWS FROM FINANCING ACTIVITIES:
    Issuance of common stock, net of issuance costs                              161,999          335,064
    Payment of liabilities in connection with acquired assets                  (787,833)                -
    Repayments of capital leases                                               (120,842)        (149,301)
    Repayment of notes payable.............................................     (18,235)         (24,701)
                                                                                --------         --------
                    Net cash provided by/(used in) financing activities....    (764,911)          161,062
                                                                               ---------          -------
                    Net decrease in cash...................................    (528,964)        (774,842)

CASH, beginning of period..................................................    2,880,342        5,269,627
                                                                               ---------        ---------

CASH, end of period........................................................    2,351,378        4,494,785
                                                                               =========        =========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
    Cash paid during the period for:
    Interest...............................................................      857,921          366,352
</TABLE>


<PAGE>


                    NEW WORLD COFFEE - MANHATTAN BAGEL, INC.

                   Noted to Consolidated Financial Statements
                                   (Unaudited)

1.   The March 26,  2000  consolidated  balance  sheet  presented  herein was
     derived  from  the  audited  December  26,  1999   consolidated   financial
     statements of the Company.

2.   These  consolidated  financial  statements have been prepared in accordance
     with  generally  accepted  accounting   principles  for  interim  financial
     information  and with the  instructions  to Form 10-QSB.  The  consolidated
     financial  statements  should  be  read in  conjunction  with  the  audited
     consolidated  financial  statements  of the  Company  for  the  year  ended
     December 26, 1999 for a description of the significant accounting policies,
     which have continued without change, and other note information.

3.   All  adjustments  (recurring  in  nature)  which  are,  in the  opinion  of
     management, necessary for a fair presentation of the results of the interim
     periods  have been  included.  The results of the  interim  periods are not
     necessarily indicative of the results for the full year.


                SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain  statements  in this Form  10-QSB  under  "Management's  Discussion  and
Analysis  of  Financial   Condition  and  Results  of   Operations"   constitute
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation  Reform  Act of 1996 with  respect  to the  financial  condition  and
business of the Company.  The words  "estimate",  "plan",  "intend",  "believe",
"expect",  and similar  expressions  are  intended  to identify  forward-looking
statements. Such forward-looking statements involve and are subject to known and
unknown  risks,  uncertainties,  and other  factors which could cause the actual
results, performance, and achievements of the Company to be materially different
from any future results,  performance (financial or operating),  or achievements
expressed or implied by such forward-looking  statements.  Such factors include,
among others, the following:  competition;  success of operating and franchising
initiatives; development schedules; advertising and promotional efforts; adverse
publicity;  acceptance of new product offerings;  availability of new locations,
and  terms of sites for store  development;  changes  in  business  strategy  or
development plans;  availability and terms of capital; food, labor, and employee
benefit costs; changes in government  regulations;  regional weather conditions;
and other factors referenced in this Form 10-QSB or in the Company's Form 10-KSB
for its 1999 fiscal year.


<PAGE>



                 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

     New World Coffee - Manhattan Bagel, Inc. is the largest franchisor of bagel
bakeries and coffee bars in the United States.  It operates and franchises bagel
bakeries  and coffee  bars in 26 states  throughout  the  United  States and the
District of Columbia.  The first  Company-owned New World Coffee store opened in
1993 and the first franchised New World Coffee store opened in 1997. On November
24, 1998, the Company  acquired the stock of Manhattan Bagel,  Company,  Inc. On
August 31, 1999, the Company acquired the assets of Chesapeake Bagel Bakery.  At
March 26, 2000 the  Company's  retail  system  consisted  of  approximately  361
stores, including 13 Company-owned and 348 franchised and licensed stores.

     The Company is  vertically  integrated  with bagel  dough and cream  cheese
manufacturing plants in Eatontown, NJ and Los Angeles, CA, and a coffee roasting
plant in Branford,  CT. The Company's products are sold to franchised,  licensed
and   Company-owned   stores   as  well  as  to   wholesale,   supermarket   and
non-traditional outlets.

     The Company is a Delaware corporation and was organized in November 1992.

Fiscal  Quarter Ended March 26, 2000 Compared to Fiscal Quarter Ended March
28, 1999

Revenues.
Total  revenues  decreased 4.5% to $9,146,082 for the fiscal quarter ended March
26,  2000 from  $9,579,837  for the  comparable  1999  period.  The  decrease in
revenues was wholly  attributable  to a 47.6%  decline in Retail  Sales.  Retail
Sales  decreased to $1,220,500 or 13.3% of total revenues for the fiscal quarter
ended  March  26,  2000  from  $2,330,002  or 24.3% of  total  revenues  for the
comparable  1999  period as the Company  continued  its  strategy of  converting
Company-owned  stores into franchised units.  Manufacturing  revenues  increased
1.8% to $6,150,638 or 67.3% of total revenues for the fiscal quarter ended March
26, 2000 from  $6,044,207  or 63.1% of total  revenues for the  comparable  1999
period.  Franchise  related  revenues  increased 47.2% to $1,774,944 or 19.4% of
total  revenues for the fiscal  quarter ended March 26, 2000 from  $1,205,628 or
12.6%  of total  revenues  for the  comparable  1999  period.  The  increase  in
franchise  related  revenues was primarily  attributable to additional  revenues
from the  Chesapeake  Bagel  Bakery  brand which was  acquired  in August,  1999
combined  with a higher  royalty base as the Company  continued  its strategy of
converting Company-owned stores to franchised units.

Costs and Expenses.
Cost of  Sales  as a  percentage  of  related  manufacturing  and  retail  sales
decreased  to 79.5% for the fiscal  quarter  ended March 26, 2000 from 82.3% for
the comparable  1999 period.  The reduction in costs was  attributable to a more
profitable  product mix as the  Company  continued  to shift to a  predominantly
manufacturing-based sales mix.

General and  administrative  expenses  increased to $1,585,173 or 17.3% of total
revenues for the fiscal quarter ended March 26, 2000 from $1,511,171 or 15.8% of
total  revenues  for the  comparable  1999 period.  The  increase was  primarily
attributable to marketing and operational  staff additions  required in order to
service the Company's additional brands.

Depreciation and amortization  expenses increased by 5.4% to $571,915 or 6.3% of
total revenues for the fiscal quarter ended March 26, 2000 from $542,714 or 5.7%
of total  revenues for the  comparable  1999 period.  The increase was primarily
attributable  to depreciation on  infrastructure  improvements  that the Company
made during the second half of fiscal 1999.

Interest  expense,  net for the fiscal quarter ended March 26, 2000 increased to
$478,178,  or 5.2% of total revenues from $290,889 or 3.0% of total revenues for
the  comparable  1999 period.  This increase is primarily due to interest  costs
relating to the  acquisition  of the  Chesapeake  Bagel  Bakery brand as well as
interest incurred on borrowings for infrastructure improvements.

Net Income.
Net income for the fiscal  quarter ended March 26, 2000 increased to $650,765 or
7.1%  of  total  revenues  from  $342,883  or  3.6% of  total  revenues  for the
comparable  1999  period.  This  increase  is  primarily  a result of  increased
franchise related revenues of $569,316 which were offset by additional  interest
expense of $187,289 as well as a $74,002 increase in general and  administrative
expenses.

Liquidity and Capital Resources


     The  Company  plans to  satisfy  any of its  capital  requirements  in 2000
through  cash  flow  from  operations  and the sale of  Company-owned  stores to
franchisees  which should  generate  additional  cash.  The Company  continually
accesses its ongoing  capital  needs and may consider the issuance of additional
shares in order to raise capital should business conditions dictate that such is
necessary.

       At March 26, 2000 the Company had a working capital surplus of $2,547,029
compared to a working capital surplus of $1,444,202 at December 26, 1999.

      The Company had net cash provided by operating  activities of $353,359 for
the first quarter of 2000 compared with net cash used in operating activities of
$1,063,769 for the first quarter of 1999. The  improvement in cash provided from
operating  activities was the primarily  attributable  to the improvement in net
income for the quarter and the fact that certain non-recurring  liabilities were
paid during the first quarter of 1999.

     The Company had net cash used in investing  activities  of $117,412 for the
first quarter of 2000 compared with net cash provided by investing activities of
$127,865 for the first quarter of 1999.

     The Company had net cash used in financing  activities  of $764,911 for the
first  quarter of 2000  compared  with net cash used in financing  activities of
$161,062 for the first quarter of 1999.

Seasonality and General Economic Trends

     The  Company  anticipates  that its  business  will be  affected by general
economic  trends that  affect  retailers  in general.  While the Company has not
operated  during a period  of high  inflation,  it  believes  based on  industry
experience  that it would generally be able to pass on increased costs resulting
from inflation to its customers. The Company's business may be affected by other
factors,  including  increases in the  commodity  prices of green coffee  and/or
flour,  acquisitions by the Company of existing stores,  existing and additional
competition,  marketing programs, weather, and variations in the number of store
openings.  The Company has few, if any,  employees at the minimum wage level and
therefore  believes  that an  increase in the  minimum  wage would have  minimal
impact on its operations and financial condition.


<PAGE>


                           PART II - OTHER INFORMATION

                    NEW WORLD COFFEE - MANHATTAN BAGEL, INC.

                                 MARCH 26, 2000

Item 1.   Legal Proceedings

         Not applicable

Item 2.   Changes in Securities

         Not applicable

Item 3. Defaults upon Senior Securities

         Not applicable

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

         Not applicable

Item 5.  Other Information

         Not applicable

Item 6.  Exhibits and Reports on Form 8-K

       (a)  Exhibits.  None

       (b)  Reports on Form 8-K.  None

<PAGE>



                                   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.

                         NEW WORLD COFFEE-MANHATTAN BAGEL, INC.


Date: May 10, 2000         By: /s/ R. Ramin Kamfar
                               ---------------------------
                                   R. Ramin Kamfar
                                   Chairman & CEO



Date: May 10, 2000         By: /s/ Jerold E. Novack
                               ---------------------------
                                   Jerold E. Novack
                                Chief Financial Officer