Google introduce local place search for some times and its helping the local business pretty well,if you can use this feature properly.Google speaks little bit about, how local search works.On Lat long blog post states some methods.Where Google product Manager Jeremy Sussman gave some hints .
“Say you’re in Union Square in New York City, and you want to find a nearby coffee shop, so you go to Google and type in ‘coffee shops in Union Square, NYC’. You’ll find a list of just what you typed in – local coffee shops near Union Square with all the basic information you would expect to find, such as name, address, and phone number, and if they exist, you’ll also find reviews, ratings, and links to other relevant resources,” he explains. “These organic listings are free to both the user and the business. We give you the best results we can find.”
“Now, there are a variety of relevance factors Google uses to match or answer your search query, in this case, locating coffee shops near Union Square. Three of the key factors are: relevance, prominence, and distance,” he continues. “Relevance is showing you only coffee shops and not unrelated businesses such as retailers, dry cleaners, and so on. Prominence is determined by how well known or prominent certain coffee shops are, based on sources across the web. Distance is easy. We calculate how far each coffee shop is from Union Square. And if you don’t specify Union Square in your search, we’ll show you coffee shops based on your general location.”
Also we can found Jeremy speaks about Google Hotpot recommendation will effect on Google place search results.As we know “Hotpot – Google’s new local recommendation engine based on ratings from you and your friends – can definitely affect the ranking of the local businesses you see in your organic search results.”