Square research flags connection craving loyal regulars powering Britain’s local businesses

Britain’s local businesses are powered by loyal regulars who generate them up to five times more annual revenue as they typically return to a business 11 times throughout the year, according to new research from Square.

Based on the company’s buyer-seller interactions and a survey of 1,009 Brits, this reveals that over the past year, in restaurants and cafés, 74% of UK consumers have made local purchases a few times a month or more, 70% are shopping locally at least weekly, and 49% are buying from local beauty businesses multiple times a month.

Four in five consumers say their relationship with their favourite local spot is much more than transactional, with 40% describing the relationship as familiar - that feeling of being recognised when you walk through the door - and another 29% feel connected with a personal bond with the staff.

Peter Dore-Smith, Founder of Kaffeine, says: “Having regular customers helps in times of trouble or economic challenges because they will usually support you. It is often a forgotten thing that as a café, we can be a huge part of a person's day. During Covid, when we opened as a hatch at the doorway, customers would walk up to five miles to get to our store. This commitment by our regulars helped us in those times.”

This community aspect means that consumers are willing to prioritise quality experiences when choosing where to spend locally. Quality remains the most important factor influencing consumer decisions, cited by 73% of respondents, followed by price (63%) and convenience (57%). These experiences can translate into spending growth, as in the past 12 months, 22% of consumers say they increased spending at local businesses.

John O’Beirne, CEO at Square International, says: “While some households may be tightening their belts, local spending continues to hold strong. But local growth doesn’t come from a single “big bet” moment - it’s nurtured over time, with regulars acting as stabilisers for businesses.”

“Owners need to design their business around repeat visits and low friction loyalty. That means combining consistent quality, human connection and convenient digital tools to make repeat visits easy and rewarding, so everyday purchases can become lasting habits.”

Repeat customers who return to the same business at least four times in a year form the backbone of local commerce, and business owners recognise this as they actively invest in marketing to build relationships with them.

Square says that use of its marketing products has risen every year since 2021, and in 2025 alone, loyalty subscriptions grew by 46%. 93% of its businesses using a marketing product successfully maintain regulars, compared to 39% of businesses that don't use a marketing product.

Looking forward, consumer confidence in local spending remains strong as 27% of UK consumers plan to shop or dine locally more often in the next year. Consumers are willing to support local businesses even when prices rise. While affordability is a factor to consider, customers will stick with brands with higher prices if the value is obvious, with 69% saying they would continue spending with a local business if higher prices delivered better value or experience.

Joanna Mangion, Founder and Director, nue ground Wellness Lifestyle, says: “Our growth has come through loyalty, increased frequency, and a widening customer base. Since opening a studio next to our café, customers are spending more time with us: coming for a class, staying for brunch, getting a massage, enjoying a wellness drink, or working from the café. Spending has become more intentional as quality matters more, and overall engagement has increased.”

2026 RTIH Innovation Awards

Payments will be a key focus area at the 2026 RTIH Innovation Awards.

The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.

Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.

Check out our 2025 winners here.

Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”

“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”

He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”

Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.