<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM DIEDRICH COFFEE, INC. UNAUDITED FINANCIAL STATEMENTS FOR THE TWENTY-SIX WEEKS ENDED AND AS OF JULY 31, 1996 CONTAINED IN COMPANY'S SECOND QUARTER 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <CIK> 0000947661 <NAME> DIEDRICH COFFEE, INC. <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> JAN-31-1997 <PERIOD-START> FEB-01-1996 <PERIOD-END> JUL-31-1996 <EXCHANGE-RATE> 1 <CASH> 57,058 <SECURITIES> 0 <RECEIVABLES> 151,153 <ALLOWANCES> 0 <INVENTORY> 952,636 <CURRENT-ASSETS> 1,477,204 <PP&E> 9,607,429 <DEPRECIATION> 1,285,634 <TOTAL-ASSETS> 11,146,825 <CURRENT-LIABILITIES> 7,319,084 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 3,025,813 <COMMON> 330,698 <OTHER-SE> 0 <TOTAL-LIABILITY-AND-EQUITY> 11,146,825 <SALES> 8,942,091 <TOTAL-REVENUES> 8,942,091 <CGS> 3,908,882 <TOTAL-COSTS> 3,908,882 <OTHER-EXPENSES> 4,742,019 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 108,732 <INCOME-PRETAX> 184,464 <INCOME-TAX> 71,649 <INCOME-CONTINUING> 112,815 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 112,815 <EPS-PRIMARY> .03 <EPS-DILUTED> 0