If you've got PhotoShop I'd recommend that option, however since you asked for a free program to convert the file, I'm going to assume that you don't have access to PhotoShop.
Freebie! ~ And, I might add an outstanding graphics editor in many respects considering it's free status. One I dearly love for it's properties of opening graphics files with improper extensions and then saving them in proper extension...
IRFanView
Tucows download window
You might also want to try and optimize the jpg of the bar owners as well, at 79kb it was a little slow loading on dial-up with the other files loading on the page.