The bot just doesn't have your exact location, It only knows what city do you live in.
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If it was only city, how would it know which street was the closest?
Person who took the picture is on Wifi - based on the IP Snapchat would know in which part of Tonawanda they're in as IP encodes zip-code, and looking at MD's website there's 8 locations in the city, and all but two of them on different zip-codes; the MD mentioned by the AI is one of those unique-ones.