Search Engine Land's Chris Silver Smith has some nice tidbits to share about optimizing images for local SEO...

Here's a handful of image optimizations which can benefit the overall search marketing and online marketing programs for local business sites:

Provide a photo of your business facility location/building on your site.

Provide photos of all your products on your site if you haven't already.

It's very common to add in a map or link to a map on a local business's website.

If your local business has its own blog, add a blog map or FeedMap onto it.

Always add ALT text into image tags! Describe the images using valuable keywords.

Try to also provide similar caption text just below or to the side of images.

Throughout a local site, on all pages the logo image should be linked back to the homepage with relevant ALT text.

For businesses such as restaurants, it may be beneficial to add photos of celebrities who have visited the establishment.

For larger companies, or companies involved in more stuff that's of interest to the general public, add a press kit on the site, including photos of your business and products, and provide loose enough licensing to allow users to take and use those images for their uses as long as they credit you with text below the photo, linking your business name back to your homepage.

Lots of online marketers have written articles about engaging with the blogosphere to drive inbound links. I won't go into details, but you could offer free products or services to local bloggers and other reviewers-when you request them to review you, and when you contact them you could provide them with the link to the press kit or to a photo of your business, or to a picture of the specific product or service which they'd be welcome to use in their reviews.

National chain stores should try to provide a map and a picture of each location on their store locator pages.
Submit your site's images to Google's Image Labeler program, (sign up through your Google Webmaster Tools account).

Enhance your business listings in major directories by adding images into their profiles.

Various directories such as Superpages and Yelp have reviews widgets which can be added onto your site-adding these graphic elements to your site could further enhance your conversions, if you have sufficiently positive reviews.

Add Photos of the business facility and/or location into photo sharing sites such as Flickr, Fotki and 23. Include links pointing back to your website in the image's caption text, where possible.

eBay is chock full of images, and this can be leveraged as a sort of advertising medium. For reasons similar to eBay, upload listings of products to Google Base, including pictures, so that your images will appear in Google Products (formerly known as "Froogle").

Include a picture in your email campaigns along with a link back to your site.

Get your suppliers to link back to you!

Once a site has accomplished basic SEO and basic Local SEO steps, increasing the diversity of online signals will be the key to advanced SEO.

These tidbits are really worth doing...trust me.