The Globe and Mail’s technology section has an article about a local company, TrueLocal of Guelph, Ontario. TrueLocal is a search engine that specializes in providing users with search results for local brick-and-mortar businesses.
Looks interesting but if you’re looking for something in Ontario, you’ll have to wait. It currently only provides information for US locations.
Also, it likely needs a capability to sort results by distance, with the closer hits appearing first. I tried some searches on US zip codes and most of the results were for businesses located outside of the actual zip code. In contrast, Google Local did a better job of providing relevant results (at least for my searches) and allowed me to specify distance boundaries for the results.