Hi,
the fact that your business is a local one is all in your favor, and yes a blog in principle is a good web marketingt tool in most cases, although there are always exceptions to the general rule.
There are blogs of local restaurants just to name one businessm, aI am recommending my hotel Clients to start blogging immediately as it will be a strategic competitive advantage for those who will embrace the new approach to the web earlier rather than later.
Be warned that a blog is not something that you buy off the shelf, put online and bang you're famous - it's a lot of very hard work and thinking. If you're not prepared to put up with this kind of effort then leave it alone and don't consider blogging - it will only hurt you.
There are many considerations on blogging that are beyond the scope of this reply, but in a nutshell, a blog can provide significant boost to your online visibility if done properly. One last thing, if you blog well rest assured you wont be needing advertising, you'll get plenty of quality traffic on your web site 
Hope this helps,
Sante
blog.achille.name