-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0000906344-07-000367.txt : 20070509
<SEC-HEADER>0000906344-07-000367.hdr.sgml : 20070509
<ACCEPTANCE-DATETIME>20070509180524
ACCESSION NUMBER:		0000906344-07-000367
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070507
FILED AS OF DATE:		20070509
DATE AS OF CHANGE:		20070509

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DIEDRICH COFFEE INC
		CENTRAL INDEX KEY:			0000947661
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-FOOD STORES [5400]
		IRS NUMBER:				330086628
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0630

	BUSINESS ADDRESS:	
		STREET 1:		28 EXECUTIVE PARK
		STREET 2:		SUITE 200
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92614
		BUSINESS PHONE:		9492601600

	MAIL ADDRESS:	
		STREET 1:		28 EXECUTIVE PARK
		STREET 2:		SUITE 200
		CITY:			IRVINE
		STATE:			CA
		ZIP:			92614

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SPENCER RICHARD S III
		CENTRAL INDEX KEY:			0001235465

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21203
		FILM NUMBER:		07833968

	BUSINESS ADDRESS:	
		STREET 1:		200 EVENTH AVENUE STE 105
		CITY:			SANTA CRUZ
		STATE:			CA
		ZIP:			95062

	MAIL ADDRESS:	
		STREET 1:		200 SEVENTH AVENUE STE 105
		CITY:			SANTA CRUZ
		STATE:			CA
		ZIP:			95062

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			WESTCLIFF CAPITAL MANAGEMENT LLC/CA
		CENTRAL INDEX KEY:			0001057396
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21203
		FILM NUMBER:		07833969

	BUSINESS ADDRESS:	
		STREET 1:		200 7TH AVE SUITE 105
		CITY:			SANTA CRUZ
		STATE:			CA
		ZIP:			95062
		BUSINESS PHONE:		4084770422

	MAIL ADDRESS:	
		STREET 1:		200 SEVENTH AVE
		STREET 2:		SUITE 105
		CITY:			SANTA CRUZ
		STATE:			CA
		ZIP:			95602
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>PRIMARY DOCUMENT
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-05-07</periodOfReport>

    <issuer>
        <issuerCik>0000947661</issuerCik>
        <issuerName>DIEDRICH COFFEE INC</issuerName>
        <issuerTradingSymbol>DDRX</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001057396</rptOwnerCik>
            <rptOwnerName>WESTCLIFF CAPITAL MANAGEMENT LLC/CA</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>200 SEVENTH AVENUE, SUITE 105</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SANTA CRUZ</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95062</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001235465</rptOwnerCik>
            <rptOwnerName>SPENCER RICHARD S III</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>200 SEVENTH AVENUE, SUITE 105</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SANTA CRUZ</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95062</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2007-05-07</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>955229</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>3.80</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By managed account</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                    <footnoteId id="F5"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">The reporting persons (&quot;Reporting Persons&quot;) are Westcliff Capital Management, LLC, an investment adviser (&quot;WCM&quot;) and Richard S. Spencer III (&quot;Spencer&quot;), a manager and the majority member of WCM.  Each Reporting Person disclaims membership in a group with any non-reporting person within the meaning of Rule 13d-5(b)(i) and Rule 16a-1(a)(1) under the Exchange Act.</footnote>
        <footnote id="F2">This amount includes securities owned directly in various accounts managed by WCM.  These include investment limited partnerships of which WCM is the general partner and investment adviser and separately managed accounts in which neither WCM nor Spencer has any ownership or other economic interest other than entitlement to investment advisory compensation.  Spencer and WCM disclaim beneficial ownership of any securities except to the extent of their respective pecuniary interests.</footnote>
        <footnote id="F3">As of May 7, 2007 all accounts managed by WCM that held shares sold all of their shares in a private transaction.</footnote>
        <footnote id="F4">Some accounts pay WCM performance-based compensation; others pay only asset-based compensation.  WCM and Spencer specifically disclaim any beneficial interest in securities held by accounts that do not pay performance-based compensation and in securities held by accounts that do pay performance-based compensation except to the extent WCM receives such compensation under circumstances in which that receipt does not qualify for the exclusion in Rule 16a-1(a)(2)(ii)(C)(1) and (2).</footnote>
        <footnote id="F5">Until May 8, 2007, Spencer served as member of the board of directors of the Issuer.  Spencer has resigned from the board effective as of May 8, 2007.</footnote>
    </footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>Westcliff Capital Management, LLC                             By: Richard S. Spencer III, Manager and Majority Member                                                                      /s/ Richard S. Spencer III</signatureName>
        <signatureDate>2007-05-09</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Richard S. Spencer III                                                        /s/ Richard S. Spencer III</signatureName>
        <signatureDate>2007-05-09</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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