By MICHELLE YEO

WONDERING where to treat yourself to a sumptuous steak in this economic downturn? Try Jack's Place.

Value for money, quality food and consistent service are the core values that have seen Jack's hold steady for 43 years - its turnover in 2008 was $32 million, with a net profit of 8 per cent of revenue.

From the first family-run outlet at Killiney Road in 1966, the company has 20 outlets today, five of which are other brands under Jack's Place - namely, Eatzi Steakhouse, Bistro and Gourmet, Seafood Harvest Restaurant and Brewbaker's kitchen and bar. There is also a Jack's Place outlet in Malaysia.

Jack's is now a management company with over 300 staff, compared with 10 people at the first restaurant in 1966.

New brands were introduced from 2006, with Seafood Harvest leading the way, followed by Eatzi in 2007 and Brewbakers in 2008.

Each brand caters to different age groups and consumer markets. Jack's Place and Eatzi are aimed at people aged 35 to 50, Brewbaker's at those aged 25 to 35 and Seafood Harvest at those aged 18 to 25.

Despite having a range of brands, Jerry Lim, senior marketing manager of Jack's Place, says all the restaurants are held together by the same core values and they all cater to the mass market. 'We believe in value and allow our customers to stretch their dollar,' he says.

Jack's Place is still the core brand, contributing 85 per cent of total revenue. The other brands help diversify the business. For example, Eatzi is a Halal brand encompassing restaurant, bakery and catering. This way, Muslim and non-Muslim friends can enjoy a meal together.

Brewbakers, on the other hand, serves freshly brewed archipelago beer to the heartlands in Sengkang. It is the only outlet in the north-east area of Singapore that is in this business, positioning itself as a unique local hang-out.

How did Jack's Place withstand 43 years of ups and downs? The answer, according to the company, is affordable prices, cost efficiency and a heritage people can relate to.

Adaptability and opportunistic management have also helped propel the company ahead of its peers over the years.

Mr Lim says that one of the biggest breakthroughs came in 1979, when Jack's became the pioneer Western restaurant in the heartlands by opening up at Ang Mo Kio. 'This was our first foray into the heartlands,' he says. 'We then saw an exponential jump in the number of outlets.

'We rode on the wave of the economic boom in the 1980s and opened significantly more outlets over a span of 10 years.' There are now 10 Jack's outlets in the heartlands, bringing them closer to all Singaporeans.

In 1991, a central kitchen was set up in Defu Lane. It centrally produces the main sauces and soups, so individual outlets do not need to do these basics themselves. The steak is also cut in the central kitchen and portioned for different outlets. And some chefs also undergo training there.

As a result, 'the chefs in the restaurant only need to add on the final touch, like freshly grill the cut steak. In this way, there is a certain consistency, because everything is done in one area.'

This helps Jack's maintain the quality, and less work is work is needed in the individual restaurants, resulting in greater efficiency. Restaurant kitchens are also smaller, which means rental savings.

Having a central foundation at Defu Lane, Jack's is able to consolidate consolidate production, buying, training and administration in one area, enabling the company to branch out easily and cost-efficiently.

But Jack's has had some setbacks, having invested in two outlets in Shanghai that closed down after seven years as demand was not strong enough. Also, an outlet in Malaysia closed last year due to the recession.

However, with core values in place, Jack's Place is standing firm despite the economic downturn - it has no plans to close outlets, cut wages and lay off staff. In fact, it is always on the lookout for extra staff.

As well as valuable government support by way of the Jobs Credit scheme and tax rebates, Jack's Place has low leverage, economies of scale gained from its many branches - and a long-established reputation that helps its restaurants maintain customers.

Still, it has been hit by a 10 per cent drop in sales because of the economic slowdown. The number of customers has remained more or less the same, but people are spending less - an average of 6.7 per cent in the first half of this year, in fact.

As a result, net profit decreased by 1.5 per cent of revenue to 8 per cent in FY 2008, from 9.5 per cent the year before.

People are ordering cheaper dishes now, and Jack's is promoting better-value meals such as set lunches and dinners which come with soup, entree and dessert, which cost 35 per less than ordering a la carte.

Sales are generally slower on weekdays, so promotions and discounts are mostly to boost sales then. Weekend sales are 50 per cent more than on weekdays.

Mr Lim says: 'Our core value has always been value for money. We don't believe in engaging in price wars. This will help us last in the long term.'

Looking ahead, Jack's Place is looking at modifying existing outlets instead of opening more. It is planning small, casual bars at the Marina Square and Safra Jurong Club outlets.

Mr Lim says: 'By doing this, we get the ground work in place. When opportunities arise, we can just duplicate the idea at other outlets.'

Jack's is cautious about expansion amid the current recession. It does not see as many bargains as previous recessions, rents have gone up and workers and locations are harder to find.

But eventually, the company will open more local outlets. And its goal within five years is an annual turnover of $50 million.

This article was first published in The Business Times.