Service business with locations in multiple cities

What's the current best practice for a business that you'll run in multiple cities that you want to rank for?

Create a different domain for each city?

Or

One authority domain with sub pages for each city?

Anyone?

Multiple sites or one with sub pages for each city?

What I know about this is the method called domain internationalization but that is for if you want to rank all over the world. I guess if you want to rank only in a single country so you should focus more on Google places. You can mark different offices in different cities and can rank with the help of them.