Why making regulars feel good is the key to Liverpool’s business success

Why making regulars feel good is the key to Liverpool’s business success

New report shows what customers really want and how to make the most of it

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As locals will be only too aware, Liverpool's food and drink scene just keeps going from strength to strength.

In 2024 Liverpool ranked 11th on Time Out’s list of the best cities in the world for food, and last year it was named the UK’s “culinary capital”, praised for its exciting and affordable offering.

The city’s foodie boom isn't just good news for epicureans, but for the economy too. Today, the food and drink industry is worth over £222million to the city centre economy*, and almost one in 10 jobs here is in its hospitality sector.

Still, with 2026 looking like a tough year for business – with forecasts of rising costs, labour shortages and shifting consumer habits – business owners are going to have to stay plugged in and switched on if they want to stay afloat.

Square understands the unique challenges faced by SMEs more than most, which is why its Local Economy Report is vital reading.

Trusted by 4.5 million businesses worldwide, Square doesn’t just take payments; it also acts as a critical business partner – providing one intuitive, customisable system that handles everything from reporting and funding to marketing and loyalty programmes.

Created by leveraging its internal transaction data, the Local Economy Report explores consumer trends and regular behaviour across six of the UK’s major cities: London, Leeds, Liverpool, Manchester, Sheffield and Edinburgh.

One of the key findings relates the importance of regular, loyal customers (defined as those who return to the same business at least four times in a year). Square describes these people as “the lifeblood of neighbourhood businesses” – which makes sense when you learn that these regulars account for at least five times as much annual revenue as transient customers.

The good news for those in the food and drink sector is that restaurants and cafes were among the most popular neighbourhood businesses. In the past year, 44% of UK consumers have made local food or drinks purchases at least weekly, and 74% have done so a few times or more a month.

What’s more, 69% of consumers said they would be likely or very likely to keep eating in a local restaurant even if it had to raise prices – which certainly bodes well for the continued success of Liverpool’s food scene.

As for what drives customers to keep coming back to their favourite spots, restaurateur – and Square customer – Tom Haydon believes that, for many, nothing beats the recognition and familiarity you get as a regular face.

“Some people love being a local regular,” he said. “So it might not be the best, it might not be the cheapest, it might not be the easiest place to get to, but if there’s a barman who greets you by name when you walk in, that makes you feel good.”

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Seven tips from Square to help your small business thrive in 2026

1. Familiarity breeds repeat customers

Friendly, reliable service really does pay dividends – especially when it comes to nurturing regular customers. Make this a core part of your culture by prioritising simple courtesies, such as greeting customers when they enter and encouraging their next visit.

2. Put your expertise front and centre

No one knows your business better than you, so don’t hide your expertise under a bushel. Personal recommendations, product explainers and a general openness to answer questions and guide purchases helps to build trust and community.

3. Deliver meaningful value

We’re living in tough financial times, but customers will stick around – even when prices increase – if they feel they’re getting value for money. The best way to do this? Be transparent with what you’re offering, and why it’s worth it.

4. Reward loyalty

We all like to feel appreciated, and loyalty schemes are a great way to foster this. Make them easy to use, worthwhile and, if possible, personal, and your customers will buy in.

5. Stay in touch – in a useful way

Out of sight is often out of mind, so keeping in touch with customers between visits helps you stay on their radar. Prioritise emails with meaningful updates, such as new products, offers and community news.

6. Get involved in your local community – and shout about it

Being part of the community is a major advantage for local businesses, but it needs to be visible. Supporting local initiatives or collaborating with neighbours shows customers just how vital you are to their neighbourhood.

7. Think green

Sustainability is an increasingly big sell – especially with people who prioritise shopping local. Implementing planet-friendly practices – and letting customers know about it – can help you stay ahead, as long as you’re honest and authentic.

For more invaluable insights that could help strengthen your business this year, explore Square's Local Economy Report here.

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