Google searches are becoming more local. The search engine is matching your searches to ypu locales worldwide, Google does this based on your IP address and finds what ever you are looking for, in your visinity, on a google map.
Just try searching for [groceries], [sporting goods] or [flowers], or looking for your [bank], your [gym], or the [post office], As Google Blog pointed out.
I got the right information when I searched on all the given criteria above. I also searched on restaurants and as you can see from picture above results were presented with a map and links to reviews of restaurants.
Also there is a link to change the location if you want to search the neighborhood or for some rare reason, Google gets your location wrong, for an example if you were to search over 3G on a mobile device!
So here comes your SEO needs, in order to get listed you need to be indexed by Google and need to have a bit of higher page rank. All the sites listed above in my search, had page ranks ranging from 3-5, most having Page Rank of 4.
So get your gear out. If you area restaurant, get it reviewed, if you are in places like Mountain View, CA or for that matter any populated place, Your customers might be bloggers or twitters. Find a way to promote your establishment on the net. Perhaps a advertisement at the restaurant or a simple menu insert telling your customers that if they blog their experince, on their next visit they could have a drink or a dish of their choice free.
What ever the way get yourself know, your customers are looking for ....
Official Google Blog: Google becomes more local