EXHIBIT 3

AT THE COMPANY:                           KEKST AND COMPANY
Howard Leitner                            Fredric J. Spar/Jessica Barist
Chief Financial Officer                   (212) 521-4800
 
(212) 532-0300
      CHOCK FULL O'NUTS BOARD URGES SHAREHOLDERS TO REJECT SARA LEE OFFER
 
  NEW YORK, NY, MAY 20, 1999--Chock Full O'Nuts Corporation (NYSE:CHF) said
today that its Board of Directors has unanimously concluded that the $10.50
per share offer from Sara Lee Corporation does not adequately reflect the
potential value of the company achievable for its securityholders.
Accordingly, the Board recommends that Chock Full O'Nuts securityholders
reject the Sara Lee offer and not tender any securities to the bidder.
 
  In reaching its conclusion, the Board, considered, among other things:
 
  .  discounted cash flow analyses (including management's estimates of
     synergies achievable by an acquiror) indicating that the per share value
     of Chock Full O'Nuts is higher than Sara Lee's offer of $10.50 per
     share;
 
  .  the long-term prospects of the coffee industry, which the Board
     perceives to be generally positive, despite the industry's recent
     weakness; and
 
  .  its belief that the $10.50 per share offer is an attempt by Sara Lee to
     acquire a competitor at a bargain price, a belief that is based in part
     upon the fact that Sara Lee has more than once indicated the possibility
     of a transaction at a price of $11.00 per share.
 
  The Board also said that it believes that it is in the best interests of its
securityholders at this time for the company to evaluate alternatives to the
Sara Lee offer, including pursuing current discussions with other potential
purchasers. Accordingly, it has asked its independent financial advisor,
Credit Suisse First Boston Corporation, to assist it in this process.
 
  "The Board is committed to protecting the best interests of the Company's
securityholders and has unanimously concluded that the Sara Lee offer does not
meet this objective," said Marvin Haas, president and chief executive officer.
"We are determined to proceed with a careful exploration of alternatives to
the Sara Lee offer that would serve the best interests of all
securityholders."
 
  Chock Full O'Nuts roasts, packs and markets regular, instant and
decaffeinated coffees under the Chock Full O'Nuts label. Its best known coffee
product is its premium, vacuum-packed, all method grind coffee. The Company is
also one of the largest marketers of food service and private label coffee,
tea and related products. Chock is also franchising Quikava, a 600-square-foot
drive-through and fresh-baked-goods concept, in its core markets in the
Northeast and Mid-Atlantic states.
 
To receive additional information on Chock Full O'Nuts, via fax, at no charge,
                    dial 1-800-PRO-INFO and enter code CHF.
 
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