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Cures sleep. Activates when the Pokemon is put to sleep. One-time use. Provides a one-time 60 Base Power Water-type attack when a Pokemon holding this item uses Natural Gift.
Most status-specific Berries take a statistical back seat to Lum Berry. Chesto Berry, however, is a popular choice for Pokemon—specifically sweepers—using Rest for recovery. Since it is not activated by the likes of poison, burn, or paralysis, a Pokemon can continue setting up while under the effects of said status, yet still use Rest with no side effects when the need arises.
The reason not too many people see Chesto Berry being used is because there aren't very many Pokemon who can utilize Rest without pairing it with Sleep Talk. Besides that, Chesto Berry's one time use makes Rest's recovery a double-edged sword; if your Pokemon ends up needing to Rest again, it is open to attack for two additional turns.
Chesto Berry is also a poor item choice for sweepers because it does little to aid a sweep. Few sweepers are willing to relinquish their Life Orbs or Choice items just to get a free turn of recovery, since the increase in power may be enough to keep them alive (an example of the old adage "the best defense is a good offense"). Rest is also a pain to fit on a moveset, since the four moveslots are typically needed to perfect type coverage.