<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)