<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
DIEDRICH COFFEE, INC. UNAUDITED FINANCIAL STATEMENTS FOR THE THIRTY-NINE
WEEKS ENDED AND AS OF OCTOBER 28, 1998 CONTAINED IN COMPANY'S 3RD
QUARTER 1999 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS
</LEGEND>
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          JAN-27-1999
<PERIOD-START>                             JAN-29-1998
<PERIOD-END>                               OCT-28-1998
<CASH>                                         863,730
<SECURITIES>                                         0
<RECEIVABLES>                                  289,131
<ALLOWANCES>                                         0
<INVENTORY>                                  1,334,488
<CURRENT-ASSETS>                             2,797,494
<PP&E>                                      14,405,709
<DEPRECIATION>                               5,017,110
<TOTAL-ASSETS>                              12,792,097
<CURRENT-LIABILITIES>                        3,758,595
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        59,478
<OTHER-SE>                                   5,967,503
<TOTAL-LIABILITY-AND-EQUITY>                12,792,097
<SALES>                                     17,996,128
<TOTAL-REVENUES>                            17,996,128
<CGS>                                        8,113,504
<TOTAL-COSTS>                                8,113,504
<OTHER-EXPENSES>                            11,730,448
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             291,894
<INCOME-PRETAX>                            (2,112,032)
<INCOME-TAX>                                     3,690
<INCOME-CONTINUING>                        (2,115,722)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                               (2,115,722)
<EPS-PRIMARY>                                   (0.36)
<EPS-DILUTED>                                   (0.36)