<PAGE>

                          SECURITIES AND EXCHANGE COMMISSION
                                Washington, D.C. 20559

                                     FORM 10-KSB

(Mark One)
(x)                   Annual Report Under Section 13 or 15(d) of
                         the Securities Exchange Act of 1934

                     For the fiscal year ended December 31, 1998

                                          or

(  )                 Transition Report Under Section 13 or 15(d)
                        of the Securities Exchange Act of 1934

                           Commission file number 000-22845

                             CREATIVE HOST SERVICES, INC.
                (Exact name of registrant as specified in its charter)

             California                                33-1069494
       (State of Incorporation)            (I.R.S. Employer Identification No.)

             6335 FERRIS SQUARE, SUITES G-H, SAN DIEGO, CALIFORNIA 92126
                 (Address of principal executive offices) (Zip Code)

                                    (619) 587-7300
                  Registrant's telephone number, including area code


             Securities registered pursuant to Section 12(b) of the Act:

                                                 Name of Each Exchange On
        Title of Each Class                              Which Registered

           COMMON STOCK                                       NASDAQ



     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       
                                                ------      -----

     Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or any amendment to
this Form 10-KSB.  / / 

     Revenues for fiscal year 1998 were $14,720,350

     The aggregate market value of voting stock held by non-affiliates of the
registrant was $2,771,885 as of March 25, 1999 (computed by reference to the
last sale price of a share of the registrant's Common Stock on that date as
reported by NASDAQ).

     There were 3,211,033 shares outstanding of the registrant's Common Stock as
of March 25, 1999.

<PAGE>

                                       PART II

ITEM 5.   MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED 
          STOCKHOLDER MATTERS

     The Company's Common Stock trades on the NASDAQ Market under the symbol
CHST.  The Company completed its initial public offering on July 22, 1997 and
its stock began trading on the Exchange at that time.  The number of
recordholders of the Common Stock was 129 on March 25, 1999.  The Company
believes that there are a significant number of beneficial owners of its Common
Stock whose shares are held in "street name."  The closing sales price of the
Common Stock on March 25, 1999 was $1.25 per share.  The following chart sets
forth, for the fiscal period indicated, the high and low closing sales prices
for the Company's Common Stock.

<TABLE>
<CAPTION>
                                                          Low        High
                                                        -------     -------
           <S>                                          <C>         <C>
           Fiscal 1997
                July 22, 1997 to September 30, 1997       3 13/16   4 7/16
                Fourth Quarter                            1 7/8     4 3/16

           Fiscal 1998
                First Quarter                             2 1/32    2 3/4
                Second Quarter                            1 3/4     3
                Third Quarter                             1 3/8     2 3/16
                Fourth Quarter                              13/16   2
</TABLE>

     Pursuant to a Private Placement Memorandum dated December 21, 1998, the
Company sold 12% Secured Convertible Promissory Notes, together with Warrants to
purchase 240,000 shares of Common Stock, for an aggregate amount of $3,000,000
in cash.  The principal underwriter in this offering was EBI Securities
Corporation.  The Notes and Warrants sold in this offering were offered only to
"accredited investors" as defined in the Securities Act of 1933, as amended. 
The underwriter received (i) 3% of the proceeds of sales of the securities to
non-institutional investors purchasing less than $1,500,000 of Notes, (ii) 2% of
the proceeds of sales of securities to institutional investors purchasing
$1,500,000 or more of the securities, and (iii) 40,000 warrants to purchase
Common Stock on the same terms as the warrants sold in this offering.  These
securities were sold pursuant to Rule 506 of Regulation D under the Securites
Act of 1933, as amended.  The Notes are convertible at the option of the holder
thereof, in whole or in part, at any time on or after March 21, 1999, at $2.625
per share of Common Stock.  The Warrants are exercisable until December 21, 2003
at an exercise price of $1.48.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL 
          CONDITION AND RESULTS OF OPERATIONS

     WITH THE EXCEPTION OF HISTORICAL MATTERS, THE MATTERS DISCUSSED IN THIS
COMMENTARY ARE FORWARD LOOKING STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES.
FORWARD LOOKING STATEMENTS INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS
CONCERNING ANTICIPATED TRENDS IN REVENUES, THE FUTURE MIX OF COMPANY REVENUES,
THE ABILITY OF THE COMPANY TO REDUCE CERTAIN OPERATING EXPENSES AS A PERCENTAGE
OF TOTAL REVENUES, THE ABILITY OF THE COMPANY TO REDUCE GENERAL AND
ADMINISTRATIVE EXPENSES AS A PERCENTAGE OF TOTAL SALES, AND THE POTENTIAL
INCREASE IN NET INCOME AND CASH FLOW  THE COMPANY'S ACTUAL RESULTS COULD DIFFER
MATERIALLY FROM THE RESULTS DISCUSSED IN SUCH FORWARD LOOKING STATEMENTS.
FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE THE INABILITY
TO OBTAIN THE SUBSTANTIAL ADDITIONAL CAPITAL NECESSARY TO COMPLETE CONSTRUCTION
OF CAPITAL IMPROVEMENTS AWARDED UNDER EXISTING CONCESSION AGREEMENTS, POSSIBLE
EARLY TERMINATION OF EXISTING CONCESSION CONTRACTS, POSSIBLE DELAY IN THE
COMMENCEMENT OF CONCESSION OPERATIONS AT NEWLY AWARDED CONCESSION FACILITIES,
THE NEED AND ABILITY TO ATTRACT AND RETAIN QUALIFIED MANAGEMENT TO MANAGE
OPERATIONS, THE NEED TO OBTAIN CONTINUING APPROVALS FROM GOVERNMENT 

                                       13

<PAGE>



                          CREATIVE HOST SERVICES, INC.

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                          YEAR ENDED DECEMBER 31, 1998

(5)     NOTES PAYABLE:

        A summary is as follows:

<TABLE>
               <S>                                                                        <C>
               Note payable, at an effective interest rate of 13.3%, due in
                 monthly installments of $30,000 through January 2001. Principal
                 and interest of $43,041 due thereafter through December 2010,
                 secured by assets of the Company and shares owned by the
                 president and major stockholder of the Company                           $      2,932,847
               Note payable to landlord of former franchisee, interest
                 at the greater of 10% or bank prime rate plus 1%,
                 due in monthly installments of $1,264 through 2001                                 32,441
                                                                                          ----------------

                                                                                                 2,965,288
               Less current maturities                                                              12,485
                                                                                          ----------------
                                                                                          $      2,952,803
                                                                                          ----------------
                                                                                          ----------------
</TABLE>

        The following is a summary of the principal amounts payable over the
        next five years and thereafter:

<TABLE>
               <S>                                                                        <C>
               1999                                                                       $         12,485
               2000                                                                                 13,792
               2001                                                                                171,561
               2002                                                                                186,372
               2003                                                                              2,581,078
                                                                                          ----------------

                                                                                          $      2,965,288
                                                                                          ----------------
                                                                                          ----------------
</TABLE>

            In December 1998, the Company conducted a private placement
            offering. The Company sold 3,000 units. Each unit consisted of a
            $1,000 note payable with interest of 12% per annum and 80 common
            stock purchase warrants. Each warrant entitles the holder to buy one
            share of common stock at an exercise price of $1.48. The warrants
            expire on December 31, 2003. A payment of interest only is payable 
            monthly from January 1999 until January 2001. Comencing January 
            2001, a payment of both principal and interest of $43,041 is 
            payable monthly until December 2003, at which time all unpaid 
            principal and intrest is due. The notes are collateralized by 
            substantially all assets of the Company and shares owned by the 
            president and major stockholder of the Company. Commencing March 
            1999, each note may be converted, at the option of the holder, to 
            shares of the Company's common stock at the price per share of 
            $2.625 of the outstanding balance of principal and interest
            due. The fair value of the notes and the carrying amount and fair
            value of the associated warrants were determined. The value of the
            warrants amount to $24,240 and is included in paid-in capital. Net
            proceeds raised from the notes in the amount of approximately
            $2,600,000 were used to pay for certain improvements to concessions
            operated by the Company.

See accompanying independent auditors' report.

                                       F-10

<PAGE>

<TABLE>
<CAPTION>
 Exhibit No.                        Description                       Page No.
------------                        -----------                       --------
<C>           <S>                                                     <S>
   3.1        Amended and Restated Articles of Incorporation*
   3.2        Bylaws*
   4.1        Specimen Certificate for Common Stock*
   4.3        Warrant Agreement (including form of Warrant
              Certificate)*
   4.4        12% Secured Convertible Note dated December 21, 
              1998 in favor of Fiserv Correspondent Service.
   4.5        Indenture dated December 21, 1998 between the Company and U.S.
              Bank National Association.
   10.1       1997 Stock Option Plan*
   10.2       Employment Agreement between the Company and Sayed
              Ali*
   10.3       Lease Space In The Cedar Rapids Municipal Airport
              Terminal For The Purpose of Operating Food/Beverage,
              News/Gift, And Airline Catering Concessions dated as
              of September 16, 1996 between the Company and Cedar
              Rapids Airport Commission.*
   10.4       Food And Beverage Concession Agreement And Lease dated
              as of October 4, 1996 between the Company and Richland
              -Lexington Airport District.*
   10.5       Agreement between the Company and Delta Airlines.*
   10.6       Concession And Lease Agreement dated as of May 24,
              1996 between the Company and Lehigh-Northhampton
              Airport Authority.*
   10.7       Food And Beverage Concession Agreement And Lease
              Bluegrass Airport between the Company and Lexington-
              Fayette Urban County Airport Board.*
   10.8       Food And Beverage Concession Agreement dated as of
              July 26, 1995 between the Company and Outagamie
              County.*
   10.9       Food And Beverage Lease And Concession Agreement dated
              as of May 17, 1996 between the Company and Roanoke
              Regional Airport Commission.*
   10.10      Food And Beverage Concession Agreement dated as of
              October 24, 1995 between the Company and the County of
              Dane.*
   10.11      Food And Beverage Concession Lease Agreement dated as
              of June 10, 1994 between the Company and the Port of
              Portland.*
   10.12      Concession Agreement dated as of March 25, 1995
              between the Company and City of Los Angeles.*
   10.13      License And Use Agreement Food/Beverage Service
              Aspen/Pitkin County Airport 1994 Through 1999 dated as
              of April 1994 between the Company and Board of County
              Commissions of Pitkin County Colorado.*
   10.14      Food Court Agreement dated as of November 14, 1996
              between the Company and City and County of Denver.*
   10.15      Agreement between the Company and the City and County
              of Denver as of November 19, 1996.*
   10.16      Agreement dated as of February 8, 1996 between the
              Company and the County of Orange.*
   10.17      Concession Agreement for Food and Beverage Operations
              at the Des Moines International Airport between the
              Company and the City of Des Moines, Iowa dated as of
              June 2, 1997.**
   10.18      Concession Agreement between the City of Los Angles
              Department of Airports and the Companing Covering the
              Operation and Management of the Food and Beverage
              Package #3 Concession at Ontario International
              Airport.**
   10.19      Concession Agreement and Lease between the Piedmont
              Triad Airport Authority and the Company.**
   10.20      Form of Franchise Agreement.*
   10.21      TCBY Franchise Agreement dated October 29, 1996
              between TCBY Systems, Inc., and St. Clair Development
              Corporation.*
   10.22      Industrial Real Estate Lease between the Company and
              WHPX-S Real Estate Limited Partnership.*
   10.23      Warrant to Purchase 270,000 shares of Common Stock in Favor of 
              Fiserv Correspondent Services.
   23.2       Consent of Stonefield Josephson, independent
              accountants
</TABLE>

                                       23

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---------
* Incorporated by reference from the exhibits included with the Company's
  Registration Statement (No. 333-6722) on Form SB-2 filed with the SEC on 
  April 3, 1997.

**Incorporated by reference from the exhibits included with the Company's Annual
  Report (No. 000-22845) on Form 10-KSB filed with the SEC on March 31, 1998.

     (b)  The following is a list of Current Reports on Form 8-K filed by the
Company during or subsequent to the last quarter of the fiscal year ended
December 31, 1998.

          None.

                                      SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

Dated:  May 4, 1999               CREATIVE HOST SERVICES, INC.

                                  By:   /s/ Sayed Ali
                                        ------------------------
                                        Sayed Ali, President

     Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.



  /s/ Sayed Ali               Chairman of the Board and       May 4, 1999
----------------------        President
 Sayed Ali                    

  /s/ Booker T. Graves        Director                        May 4, 1999
----------------------
 Booker T. Graves

  /s/ John P. Donohue, Jr.    Director                        May 4, 1999
----------------------
 John P. Donohue, Jr.

  /s/ Paul A. Karas           Director                        May 4, 1999
----------------------
 Paul A. Karas

                                         24