<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)