My favorite french toast in Chico can be found at the iconic Morning Thunder Cafe. I don't know why I'm surprised by how great it is to have a little crunch in your french toast. Watch out if you're on a date, though--take the usual poppy-seed-in-the-teeth precautions.
Morning Thunder is a stand out for other reasons. Their roof is shaped like a piece of toast, and if you're a regular they'll keep your coffee mug on site for you. I would eat there more often if they didn't close at 2pm. Their Vegetaters (bottom right) are to die for, and I usually end up having to order two entrees to feed all my desires. Also shown are the yummy huevos rancheros. If you need a super cheesy breakfast bagel sandwich after a big night out, they have those too.