A small but loyal group of repeat customers generates nearly six times more annual revenue for Canadian neighbourhood businesses than one-time visitors, according to new data released today by technology company Square.
The inaugural Square Local Economy Report combines anonymized transaction data from Canadian businesses with a national consumer survey. Findings reveal that “regulars” — defined as customers who visit four or more times within a year — are the backbone of Canada’s neighbourhood economies, generating significantly more annual value for local businesses.
In Montreal, regulars generate seven times more annual value than occasional customers. Nationally, these repeat customers return at least nine or 10 times per year, creating steady revenue streams that help businesses withstand rising costs and economic uncertainty, said Square.
“We love all of our customers, but our regulars are truly the foundation of our business,” said Lucas Spinosa, owner of Black Sheep Coffee Roasters in Ontario’s Niagara region. “They’re part of our daily rhythm. With our loyalty program, we can recognize them, remember their orders, and make sure they feel valued every time they walk in. That consistency builds trust — and trust keeps people coming back.”
Despite Financial Pressures, Canadians Want Local
While many Canadians anticipate tightening household budgets in 2026, local loyalty remains strong, added Square:
● 81% of Canadians plan to shop in their local neighbourhoods as much or more than last year
● 61% would continue supporting local businesses even if prices increase, provided value improves
● 74% visit multiple local businesses in a single trip at least occasionally
The report said proximity to home now ranks as the top driver of local spending decisions, ahead of price alone, followed by word-of-mouth recommendations and perceived value. Rather than retreating from local businesses, consumers are consolidating errands and favouring convenience, familiarity, and trusted experiences.
The Neighbourhood Network Effect
The report also shows that local success is increasingly driven by a “Neighbourhood Network Effect” created by shared customers and connections between nearby businesses. In Toronto, 49% of businesses share regular customers with at least one other nearby business. In Vancouver, that figure rises to 55%, illustrating how everyday errands such as coffee, food, and quick purchases can link independent businesses. In fact, these connections have real economic impact: in Toronto, each additional local business connection is associated with an average $2,067 increase in annual revenue.
Coffee shops, in particular, act as neighbourhood anchors, frequently serving as the bridge between retail, food, and service businesses. Although regular customers may spend slightly less per visit than one-time shoppers, their frequency and consistency have an outsized impact. The data found that 84% of regulars spend the same or more per visit once a relationship is established, helping businesses weather economic volatility, added Square.
“When Canadians build local routines — a coffee, a haircut, a quick stop at a shop — they’re doing more than running errands. They’re strengthening a connected network of neighbourhood businesses,” said Karisa Marra, Head of Sales at Square Canada. “Square is helping build that neighbourhood network by giving small businesses the freedom to focus, the tools to grow, and a trusted partner in their corner so they can recognize regulars, deepen loyalty, and strengthen local connections that power vibrant economies.”
The Path Forward for Local Businesses
Square said the path forward for local businesses is clear: loyalty doesn’t happen by accident. As local shopping habits continue to shape how Canadians spend, sellers who invest in turning customers into regulars — and in building intentional neighbourhood connections — will be best positioned to thrive. In today’s local economy, growth isn’t just about attracting customers. It’s about building the relationships and network effects that strengthen entire neighbourhoods.
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