Square, the technology company streamlining commerce and financial services, has unveiled early insights from its upcoming annual Future of Commerce report. The findings provide a deep dive into the trends shaping the restaurant, retail, and beauty industries in Canada, the U.S., the U.K., and Australia as businesses adapt to economic challenges and technological advancements.
Retailers Prioritize Seamless Digital and In-Store Experiences
Retailers are focusing on merging online and in-store experiences to meet evolving consumer expectations. According to the report, 71% of retail leaders believe in-store experiences—such as product demonstrations and interactive events—are crucial for business growth. As competition intensifies, 35% of retailers plan to increase their in-store events to attract customers and enhance engagement.
Recognizing the importance of an omnichannel presence, 64% of retailers plan to invest in online stores over the next year. This shift aligns with growing consumer demand for integrated shopping experiences that blend digital convenience with in-person interaction.
Restaurants Invest in Tech to Combat Rising Costs
With inflation persisting and consumer spending tightening, restaurants are turning to innovative technology solutions to increase efficiency and customer engagement. The report reveals that 89% of restaurant leaders in Canada plan to invest in technology in 2025, aiming to optimize operations and enhance customer experiences.
Toronto’s Sunnyside Grill exemplifies this trend. Owner Melanie Jackson credits Square for helping manage fluctuating staffing needs and labor costs without raising menu prices. ““We’ve been using Square since 2021, and with food costs remaining high, having a technology partner that simplifies our operations has become more critical than ever. Square has been especially helpful in managing fluctuating staffing needs over the past several years. It allows us to easily track labour costs, ensuring the restaurant stays appropriately staffed and our customers remain satisfied,” said Jackson.
The study also highlights the growing role of AI and automation in restaurant management, with 81% of Canadian restaurant leaders seeing benefits in areas such as marketing, inventory management, and vendor relations. Additionally, 72% plan to enhance loyalty programs, recognizing their impact on driving repeat business and increasing order sizes.
Beauty Industry Leverages Personalization for Growth
Personalized customer service remains a driving force in the beauty sector. The report highlights that 68% of Canadian consumers purchase products recommended by their beauty specialists, presenting an opportunity for salons and spas to expand their revenue streams. Businesses in this industry are increasingly relying on technology to enhance efficiency and customer relationships.
Businesses Remain Optimistic About Growth in 2025
Despite economic uncertainties, business leaders remain optimistic, with many planning expansion. The report finds that 77% of restaurant leaders feel more confident about their business outlook than a year ago, with 71% planning to increase their number of locations and 75% looking to diversify menu offerings.
Ming-Tai Huh, Head of Food & Beverage at Square, underscores the balancing act for restaurant owners: “In 2025, restaurants are walking the fine line between automation and hospitality. As businesses continue to face economic pressures, we’re seeing them invest in growth and experimentation as they find new, streamlined ways to work and deliver exceptional customer service – particularly through using time-saving and experience-enhancing technology.”
The Future of Commerce report also notes that 75% of restaurant leaders are planning to experiment with new services, including in-store events, subscriptions, memberships, and merchandise, to stay competitive.
The full Future of Commerce report, featuring detailed industry insights and real-world examples, will be released on February 4.
Related Retail Insider stories:
