My business has 2 locations, need search results
For best result in a case like this I´d probably create 2 campaigns in my AdWords account.
Campaigns 1: targets location 1 and includes at least one adgroup with keywords such as: [restaurant] +pizza +restaurant, (or whatever kind of food you serve) "restaurant recommendation", +restaurant +cityname.
The second campaign would be similar to the first but I´d change location and the cityname keyword.
I´d be careful when choosing keywords and keyword matchtypes (if you don´t serve pizza, you might wanna add that as a negative keyword).
I´d use ad extensions.
And I´d try to track as much as possible. If you have an online booking system - use ecommerce features in Google Analytics. If you get orders by phone - use phone tracking.