Local businesses that have the same name as where they are located have some real challenges. Many of these kinds of names are actually just the description of the product with the location: It's "Podunk Tire And Kitchen Appliance" to the owner of the business, but to a search engine there's little difference between that name and "tired of kitchen podunk appliance." And there lies the trouble. As more and more large businesses use automated tools to populate web pages that talk about local-- the more these place named businesses get left behind in the search results.
Meanwhile, there's a whole different set of problems with just plain bad names. Seth Godin talks about A Dumb Branding Strategy. And by the way.. Pizza Hut got their name because there was only room for 9 letters on the sign attached to their first building. Not many 3 letter words that describe a location.