Directory Press Responsive Opinion

I have had a non-responsive directory press site for several years listing catering companies around United States. Today I am moving to the responsive directory press. Since I am moving to a new setup I can also make some major changes. What would be better for a user/seo stand point list categories be cities the caterers are in or type of caterer such as BBQ, Vegan, Raw……

Reason I ask when I used the import tool my taxonomy for some reason didn’t import and lost what is the ideal way to have my users find local to them caterers in the new responsive layout.