Translation: pub, bar, kavarna [noun, m]
The noun lokal typically means a place where you would go for a cup of coffee (also known as kavarna) or a drink (pub). On the other hand, the adjective lokalen does mean exactly what you imagine: local.
Examples:
V nedeljo je lokal zaprt.
(The pub is closed on Sunday.)
Psom vstop v lokal prepovedan!
(Entrance to the bar forbidden for dogs.)
V sosednji hiši je gostinski lokal.
(There is a tavern / bar in the house next door.)
Lokal je stal v prijetni senci dreves.
(The bar stood in a pleasant shade of trees.)
Gremo na pivo? – Ja, poiščimo lokal.
(Shall we go for a beer? – Yes, let’s find a pub.)
Related:
kavarna – coffee (and tea and cake) place
čajnica – tea (and coffee and cake) place
gostilna – inn
restavracija – restaurant