Editor’s Note: The concept of “disruptive innovation” takes on renewed significance during an economic downturn such as the one we’re experiencing. Essentially, entrepreneurs and business owners must avoid copying other business models or relying upon incremental innovations. Instead, they should be willing to take bold steps of innovation.

Recent press reports, including a widely circulated Associated Press story, indicate that many independent coffee shops, unlike Starbucks, are not only sustaining themselves through this recession but also are thriving. This is not to suggest that all independent or specialty coffee shops are doing well but the trend is notably positive, especially among those shops which comprise the “third wave” of coffee. These entrepreneurs carry the strategic evolution of coffee from the status of a commodity to a beverage whose connoisseurship is on level with wine or fine chocolate.

Readers of Selective Echo know clearly that Caffe d’bolla, owned by John and Yiching Piquet, is Salt Lake City’s superior representative in this third wave. The Piquets, as I’ve written previously in this blog, have created the perfect setting to enjoy what unquestionably is the most delicate, smooth, and subtle fresh cup of coffee one can get anywhere in Salt Lake City.

And, not surprisingly, Caffe d’bolla is weathering this economic storm in good form, especially with customers who are concerned about quality and value of product. John says:

“We’ve been making it a point to provide more education for our customers about the origins, farms, flavors, and stories behind our espresso and coffee. As customers become aware of the flavor nuances, they begin to appreciate it more. As a result, our espresso, macchiatto, and siphon have been selling more. In terms of the siphon we are beginning to get a lot of customers, like young college women, that we wouldn’t typically expect.”

To put more context on this phenomenon, the Selective Echo asked Matt Milletto, vice president of Bellissimo Coffee InfoGroup in Portland, Oregon, to a Q&A about the trend. Milletto also is director of training for the American Barista and Coffee School and founder of Barista Exchange. Readers can check out both sites here and here.

SE: Long before the recession started, it has been evident that independent coffee shops actually already were being helped by Starbucks and its presence as well as it strategic flaws. What do you believe accounts for this sort of reverse effect – where the independents are holding their own – if not, in some sectors, even thriving during this economic downturn?

MM: It goes without saying that Starbucks has played a major role in the over all education and presence of espresso beverages in the United States, and has opened up many markets and has opened many consumers eyes to the world of espresso and specialty coffee beverages. Many independents have been able to open specialty coffee retail operations in burgeoning areas, where they can offer a far superior product for a similar price as what people can find at Starbucks.

In this economic climate, consumers are still drinking coffee but are more than ever wanting the highest quality product and will search out a better coffee bar when given the choice. Specialty coffee is a daily routine, and a small luxury many are less willing to give up even in a poor economy. Many consumers may not be rushing out to buy a new car, or flat screen TV, but rarely will they give up the comfort of a great daily cup of coffee.

SE: Small independents – especially those committed to a highly enhanced position of quality and value – are proving to be quite nimble. What are the key essential strategic characteristics that define these particular shops?

MM: Training is essential, along with fully understanding how to run your business. As an independent retailer, one has the ability to ebb and flow with what’s happening in their area. As a single shop owner, one will know their customers far better than a chain can, and will be able to change their menu, marketing strategies, profit centers, etc. quickly to retain business. Again, the quality aspect in everything offered is much easier to keep consistent as an independent. Many consumers also like the idea of supporting their local coffee shop as their money spent is staying closer to home.

SE: What are the opportunities and the outlook especially for those who roast and sell high-quality beans?

MM: The specialty coffee micro roaster and retailer can truly position themselves as the local coffee experts, and often draw a large following of those who appreciate the difference in quality they can taste in the cup. Similar to the restaurant industry, the companies that are doing everything right, and are focused on offering consistent and high quality coffees, will have a much greater chance of surviving in this industry.

A lot of this is dependent on the company’s ability to educate the consumer on why their coffee is better, and how it may be more sustainable than the big chains or supermarket-bought coffee. A micro roaster or retailer truly can affect people’s buying practices, which, in turn, can have a global effect in the coffee industry, through responsible and direct arrangements with coffee growers. The market is still wide open for high quality roasters and retailers across the U.S. in my opinion and I look forward to seeing people start new businesses, or expand on existing ones, with a passion for quality as the forefront of their business.

SE: Looking in the long term past the recession, independents appear ready and poised to lead how a coffee culture is defined and cultivated. What are the long-term market prospects for current independents and future entrepreneurs who seek to make a mark in the industry?

MM: This economic climate will greatly shape this industry, and may, in fact, open up opportunity for small companies to really focus on what is important to have a sustainable business, and what the consumer will appreciate. Historically, coffee has been consumed throughout every recession or economic hardship around the world, and it is up to the independent to fine tune his/her business to fit the needs of its customers. I feel we will see companies making different decisions than they may have five or 10 years ago, and will consider the specialty coffee industry as a whole when choosing where to take their business. We will see some leaders (and already have) during these times that will help shape and set an example for many to follow on how to operate a successful business.

SE: With greater frequency, customers are seeking opportunities to become more familiar with what distinguishes good, high-quality coffee from the standardized product that is readily accessible in a throwaway cup. What suggestions would you have for the new customer who is trying out a completely different coffee drink and product?

MM: Again, it is up to the retailer — or roaster — to educate its customers on what makes a cup of specialty coffee so special. Transparency is important so that the consumer can understand all of the hard work and passion that goes into this beverage. It is the retailer’s responsibility to serve every beverage properly as the barista is truly the last step in a long chain of events the coffee goes through to get into the paper (or better yet, ceramic) cup handed to that customer.

There are incredible resources for consumers on the Internet like www.baristaexchange.com and www.coffeegeek.com — even YouTube as well as books, DVDs, etc. We have also seen a huge increase in “coffee-related” events in cities across the U.S. The consumer who can search out these resources, and who has the passion to learn more will also be able to teach their friends about coffee. Coffee education is contagious and we see more and more enthusiasts learning about what they are drinking, and getting involved in their local coffee communities.