Square report: Neighborhood customers generate 6 times more revenue for local businesses

Technology

March 18, 2026

Community “regulars” are key profit drivers for local businesses, generating six times more revenue than transient customers through higher tips and repeat spending, according to Square’s 2026 Local Economy Report.

The report found that 32% of regular customers are shared among businesses within the same ZIP code, helping keep dollars local and strengthening business connections.

Additional findings include that:

• Coffee shops and casual dining establishments serve as neighborhood connectors, funneling customers to other retail and service businesses.
• Regular customers tip an average of 11% more than transient customers.
• Revenue from regular customers increased 7.67%, while revenue from transient customers declined.