For somethig like the F and C shop you mentioned, i would get them up to the top of Google for the keywords they want (even if it is just a few searches a month) because if they get more business, no matter how small, its good for them. Also, when have you ever used a takeaway once?

The thing for Local SEO, is its more about building an awareness. For these small businesses that you are turning down, you should create a package that offers something link this.

Local SEO For Keywords
Social Media
Reputation Management
1 day training course for ther assistants/secratarys etc.

Obviously, the above can be changed, and i just came up with it in the mere minutes after reading your post, but just because you are an SEO, it doesn't mean you cant start offering a variety of services to make sure you customer gets the most bang for there buck.

I'd just rank them quickly for those keywords and then work on the social media side. Get a well written and optimized google plus page with directions, pictures, hours, reviews, etc...then probably go for Facebook and try to encourage user engagement, get some fans, likes, offer promotions/deals, and other interesting content.

Otherwise offline promotion in the local community works well for small businesses (flyers, events, partnerships, etc...)

Good luck

It's all about networking. If 20-30 are searching per month, imagine if they tell only 2 or 3 other people. Word will spread like wildfire.
The other thing to consider is you are building your portfolio. As long as you are upfront with your clients and clearly outline what to expect and where there are no guarantees, ultimately it is their decision if your services will benefit their business.
Also your idea of success may be way different than theirs.

I would suggest you do what they asks for and then try to also offer your 'assessment'. The site assessment would bring in your suggestions and what you think would be best to apply or their site.

It is best to always have an open communication with your client/s. Remember you are the 'seo expert' here so it's best that you go straightforward to them and offer them options.

Why would you do PPC instead of SEO, it's still going to 20-30 traffic per month?

Just because a kewyod brings in a small amount of traffic it doesn't mean that you can't scale other keywords as well. Then once you begin traction with the smaller keywords you can then start to build for the larger city keywords.

Also just because the search volume is low doesn't mean that it actually only brings in 20 or 30 clicks a month.

I'd emphasize a full internet marketing play though, help make sure the site is mobile friendly, work on their yelp campaigns and other local search queries. What about partnerships for them? Companies or services that parallel their clientele.

just do it. you're giving them what they want.

Don't feel guilty. I spend about $8 per week at my local fish and chip shop and have done for over 12 years. Do the numbers. What is the lifetime value of a new customer for your potential clients?

Feel better now?

You got some really awful answers in here. Do not just 'do what they ask for' as so many people in here suggested.

There are a few things you can do. First, scour for my keywords. The keywords do not necessarily have to all be as specific as fish and chips. Restaurants, dining, eateries... etc. Throw in some keywords like that.

Here's the other thing. You are probably looking at something like 'fish and chips in SOMETOWNORCITY'. Drop the town or city. Now obviously that makes the search a lot more broad and you will not get accurate numbers for people in his local market. So run a AdWords campaign for a few weeks and take a look at the impressions. You can target the ads to just his area.

You should also run an AdWords campaign on a lot of the other keywords. Even ones that Google is telling you that there is no search volume. Sometimes you will be surprised at what you find.

Also, what about other towns in your area? How far will people drive to eat at a place like this? I have a client with a Italian restaurant that people will drive from an hour away to go eat there. That opens things up a lot more.

Lastly, go social. Restaurants and bars can bring in far more clients with Facebook than they usually will with SEO work. Get them to do a few small giveaways to start building up their Facebook presence, and it is usually pretty easy to grow from there.