<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 29, 1998 CONTAINED IN COMPANY'S 2ND QUARTER 1999 10-Q AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          JAN-27-1999
<PERIOD-START>                             JAN-29-1998
<PERIOD-END>                               JUL-29-1998
<CASH>                                       1,001,625
<SECURITIES>                                         0
<RECEIVABLES>                                  332,140
<ALLOWANCES>                                         0
<INVENTORY>                                  1,263,933
<CURRENT-ASSETS>                             2,852,695
<PP&E>                                      14,114,373
<DEPRECIATION>                               4,532,975
<TOTAL-ASSETS>                              13,025,794
<CURRENT-LIABILITIES>                        3,402,156
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        59,417
<OTHER-SE>                                           0
<TOTAL-LIABILITY-AND-EQUITY>                13,025,794
<SALES>                                     11,952,876
<TOTAL-REVENUES>                            11,952,876
<CGS>                                        5,395,068
<TOTAL-COSTS>                                5,395,068
<OTHER-EXPENSES>                             7,884,161
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             197,254
<INCOME-PRETAX>                             (1,503,201)
<INCOME-TAX>                                     3,690
<INCOME-CONTINUING>                         (1,506,891)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                (1,506,891)
<EPS-PRIMARY>                                    (0.26)
<EPS-DILUTED>                                    (0.26)