MADISON, Wis. -- While layoffs and cutbacks are still happening at businesses all over the country, some local restaurant entrepreneurs are bucking the trend and seeing some success.

New businesses are opening in Madison's downtown and others are looking to expand. To achieve this, the owners said they're using the fresh, local ingredients to give their patrons the experience of love at first bite, and they believe the connection has given them the competitive edge, WISC-TV reported.

Patrick O. Sweeney and his two business partners are sizing up a space for their new downtown restaurant, which will be called Merchant. They said the restaurant will be unlike anything else.

"I think Madisonians are looking for a place that's an extension of their own kitchens," Sweeney said. "It will be a grocery store/restaurant/craft bar."

Sweeney said that he thinks now is the perfect time for them to go into business on Pinckney Street.

"We are excited about our location. There's a ton happening in the neighborhood between the new Amtrak station, the proposed public market across the street and possible future developments beyond that," he said.

Just a few blocks away and also on the Capitol Square, a downtown dinning staple is preparing for a $500,000 renovation.

"The Old Fashioned was created to celebrate all things Wisconsin," said Tami Lax, the restaurant's owner. "

Lax said that using locally grown ingredients has been the key to its success.

"Since the day (that) we opened, we constantly have a good problem, which is people have to wait for a table at night," she said.

To service that growing clientele, the Old Fashioned is doubling its capacity by taking over L'Etoile's old spot next door. Two days ago, L'Etoile moved down the street to a bigger location.

L'Etoile's owner, Dianne Christensen, also opened another restaurant, called Graze. She said that both moves were necessary to keep up with demand.

"Madison is one of the leading cities for local, sustainable food. People want that. There's a demand for what we do here," she said

Meanwhile, as work begins on the Merchant, the co-owners said that they are watching what other businesses are doing to remain profitable. They said that they believe the common thread is using locally grown food.

"I think it's become more important for people to be able to connect to their food source for health reasons and to help the local economy," Sweeney said.

All the owners said that they're confident they have a business plan that works. They believe people still want to go out and have a good time, but since their pockets are a little slimmer, they are more selective about where they want to spend their money.

Stay tuned to WISC-TV and Channel 3000 for continuing coverage.