Hey SeoSaur! I have seen this happen in my industry as well, where you are ranking better further away. This usually happens when 2 things happen: the area in which the business sits is much more competitive than the surrounding areas, and the website is focused on those surrounding areas. It happens a lot in bigger cities, where the companies I work with are actually more interested in getting jobs from the surrounding areas instead of in their backyard (which is usually in a more urban area / warehouse district, and they want to rank in more suburban areas with lots of single family homes).
Totally agree with Colan as well; SEO the site, try and get as many reviews as you can, and you should start to be able to influence the results. Just make sure that area is the one that is most valuable and it's worth your time to compete there!