<ARTICLE> 5 <LEGEND> THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM WATERMARC FOOD MANAGEMENT CO. FORM 10-Q FOR THE THIRD QUARTER OF FISCAL 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUN-28-1998 <PERIOD-END> MAR-29-1998 <CASH> 197,630 <SECURITIES> 0 <RECEIVABLES> 249,163 <ALLOWANCES> 0 <INVENTORY> 370,080 <CURRENT-ASSETS> 1,971,462 <PP&E> 5,068,130 <DEPRECIATION> 496,686 <TOTAL-ASSETS> 15,783,674 <CURRENT-LIABILITIES> 8,350,406 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 329,540 <COMMON> 713,161 <OTHER-SE> (1,014,427) <TOTAL-LIABILITY-AND-EQUITY> 15,783,675 <SALES> 10,138,939 <TOTAL-REVENUES> 10,138,939 <CGS> 3,113,061 <TOTAL-COSTS> 10,235,247 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 296,971 <INCOME-PRETAX> (347,512) <INCOME-TAX> 0 <INCOME-CONTINUING> (347,512) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (347,512) <EPS-PRIMARY> (.02) <EPS-DILUTED> (.02)