May I make a suggestion- Pocatello lacks a doughnut shop. If you open a bakery- please include California style doughnuts. Sure they have the Walmart, Albertson's "so called" doughnuts, but nobody makes a decent doughnut in Pocatello. When I lived in California, we would always find a local doughnut shop and stop to grab some juice and doughnuts. Location is going to be the biggest determinant in your success and you might consider either a positive locational externality (where it benefits another shop to have you next to them) next to a book store, or economies of agglomeration (where you share a rental location, ie. a mall) by renting out a small portion inside somebody else's shop. High traffic is a must though, so stick to Hwy 91 (frequently called Yellowstone Ave. or S 4th and S 5th Avenues)
If you need help finding a location, let us know. Commercial real estate is what we do.
good luck- Mark Bitton (208)234-0550

The university area is pretty saturated with coffee shops that also offer baked goods. Other areas of town are growing and have lots of new national level retailers coming in; those areas would be a great place to tuck a mom n pop kind of bakery. There is definitely loyalty to a couple of local bakeries that have been in town for years and years, but a lot of people here are just desperate for something new!

Shelly,
I have to agree with Brian, it would probably work anywhere, although if you were to put one in Pocatello, there are some definite areas to stay away from, and some others that would work great for that type of venture.

A coffee/bakery shop would probably work just about anywhere. Be ready for some intense competition and have a plan to differentiate yourself from national chains and established locals. Read the E-Myth.