<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (A) WATERMARC FOOD MANAGEMENT CO. 10-Q FOR SECOND QUARTER OF FISCAL 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH (B) FORM 10-Q REPORT </LEGEND> <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUN-29-1997 <PERIOD-START> NOV-01-1996 <PERIOD-END> DEC-29-1996 <CASH> 32,221 <SECURITIES> 0 <RECEIVABLES> 1,105,508 <ALLOWANCES> 0 <INVENTORY> 517,035 <CURRENT-ASSETS> 2,301,877 <PP&E> 8,372,002 <DEPRECIATION> 0 <TOTAL-ASSETS> 24,853,464 <CURRENT-LIABILITIES> 9,546,391 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 329,540 <COMMON> 671,682 <OTHER-SE> 6,484,071 <TOTAL-LIABILITY-AND-EQUITY> 24,853,464 <SALES> 10,464,021 <TOTAL-REVENUES> 10,464,021 <CGS> 3,133,297 <TOTAL-COSTS> 11,070,453 <OTHER-EXPENSES> 167,572 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 294,142 <INCOME-PRETAX> (774,004) <INCOME-TAX> 0 <INCOME-CONTINUING> (774,004) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (774,004) <EPS-PRIMARY> (.06) <EPS-DILUTED> (.06)