It's not the idea per se thats bad. There are a number of stories on YC which point to this problem: Most ideas are nothing without execution. (most recent: http://news.ycombinator.com/item?id=237096 )
Edit: Ah yes, Hello!Morning episode #331 and #332.
Mud Bay Granary isn't exactly a bakery, but it does nothing but sell expensive, organic, gourmet pet food. It's been in Seattle for years, and there are at least a half-dozen stores.
In fact TV advertisement for dog food is already going the gourmet route, which is disgusting. I remember an ad where the icky meat heap was decorated with a thyme leaf.