Downtown Chico has the commonly found Starbucks and Peets Coffee, but if you're in the mood for a unique little cafe, check out the Naked Lounge. The baristas are friendly and they bring your cup of espresso-filled goodness right to your seat. They always have latte art (which is great for photographers). If you are a Chai person, you will find the best Chai here! It isn't overly sweet and you can definitely taste the spices. Also they're pretty famous for their Bowl of Soul, so if you like chamomile tea, give it try.
They have indoor seating, which includes tables & chairs and also couches. They also have outdoor seating if you want to enjoy the sunshine. The Naked Lounge has a laid back, hipster, artsy vibe and is a great place to hang out.