3 Cups (despite my not knowing what the name means and originally thinking I was meeting someone at a place called Tree Cups) is a delightful coffee shop in Chapel Hill. It's set off from the hustle-bustle of Franklin Street and has a nice relaxed atmosphere. The staff are friendly, helpful, and unpretentious (which can be difficult to find at coffeeshops - see other reviews). The coffee has always been great, and the few pastries I've tried have been tasty as well.
The setting is nice with both indoor and outdoor seating. A nice place to meet someone for a meeting or just hang out and read a book.