Square acts as a critical business partner, with a system handling everything from reporting and funding to marketing and loyalty programmes (Image: Square)

Why customers keep coming back to Birmingham’s small businesses

01 May 2026, 12:05 by Christopher Jones · Birmingham Live

Words by Siam Goorwich

The number of independent bakers in the UK has grown by 34% in the past five years*, and the Midlands is right at the heart of the story.

Historically known as the industrial heartland of England, the region has recently earned a far more tasty title: the UK’s bakery capital.

Home to one in seven (14%) of the nation’s active bakeries, the trend shows no sign of slowing down, as the Midlands tops the list as the fastest-growing bakery business hotspot too.

The growth of independent bakeries reflects a broader UK trend – the prominence of small, local businesses.

While it can often feel like big brands dominate the high street, 99.9% of UK businesses are SMEs, and they account for over half the total income and employment. This shows it’s really small, independent businesses that are the backbone of UK neighbourhoods.

Square understands the unique challenges faced by SMEs (Image: Square)

Square understands more than most the unique challenges faced by SMEs, 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.

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.

Square user Florence Mae Maglanoc owns a chain of bakeries, and knows the power of regular customers only too well.

“Convenience gets people in at first, but consistency and quality keep them coming back,” she says.

“Small things matter: having their order ready, letting them pay later when it’s quieter or giving them something new to try that we’re working on.”

Since launching her business in February 2021, Florence has opened two more stores, and believes that nurturing these indispensable relationships with her dedicated regulars has been vital to her success.

Square’s research produced another finding that should put a smile on the faces of Birmingham’s bakers: nationally, food and drink average spend was up by 3% in 2025 – higher than any other sector. Now, that’s a statistic worth celebrating.

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

Square says loyal customers are “the lifeblood of neighbourhood businesses” (Image: Square)

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.