Francis Jean opened a store in 1986, the first of a long list which now counts 164 stores.
IRIS, and an Optometrist with a grand vision
CLAUDE TURCOTTE
A
t the age of 18, Francis Jean left his hometown,
Baie-Comeau, to learn english and play hockey
in an American university. At that time, he already
had plans to create his own business and thought that a
good way to do it would be to become an optometrist.
In the United States, he discovered some very
fashionable optical stores, equipped with the latest
technology and they were selling very high quality
products. On the otherhand he was surprised to find
optometrists doing eye exams at Wal-Mart and other
superstores. He was astounded.
including optometrists, opticians, friends and
relatives. “Our shareholders are very happy, with an
annual ROI of 20%”, he said, disclosing
the increase of the share value in the past years: at
the first issue of shares in 1995, the value was $500
and now it has soared $8000 in 2008.
regulation and legislation aspects as well as against
the conservatism of the profession. “We changed
the way of doing things and it’s the customer who
dictated the changes”, he says. In Quebec, the
battle seems finished. In British Columbia, a new
regulation was presented two months ago, which
will allow an optometrist to have more than four
clinics. To facilitate this regulation, Dr. Jean
threatened to go to court to call upon the Canadian
Charter of Rights and Freedoms and the principle of
the right of association of the optometrists.
From Baie-Comeau to Montreal and Vancouver
Dr. Jean practiced as an optometrist until 2000.
During that time he opened four other stores
on the North Shore and bought seven stores in
Montréal in 1995. In 1990, with joint partners,
The battle in Ontario
he created “IRIS the Visual Group”,
“Several
years
after
purchasing
the
IRIS
trademark
The
IRIS
CEO
is
He wondered what would happen to the optometrists
first launched in 1989 by optometrists ago, eyewear
convinced
that
the
same
in Canada when these superstores invaded the
who lacked money to develop their
thing will happen in Ontario,
market. According to him, the only way to “resist”
network. The head office was and still was not important.
which, according to him, is the
was to create a strong brand, involving much more
is in Laval. Dr. Jean and his family The frames were
only place in North America where
than simply selling glasses. It was important to him
moved to Laval, before relocating to
the professional corporation is so
that optometrists, opticians and other eye specialists
Vancouver after acquiring majority even hidden
conservative that an optometrist is
learn how to work together to enhance the quality of
ownership in Fort Optical (55 stores). behind curtains.”
required to sell glasses at cost, plus
their services and products.
In 1986, Dr. Jean started a purchasing
professional fees. This eliminates
After graduating from the School of Optometry
group, judging it essential to “control
the incentive to keep a diversified inventory, resulting
at the Université de Montréal, Dr. Francis Jean
purchasing” and establish a strong network
in cheaper, lower quality products. Moreover, the
returned to Baie-Comeau in 1986 to open a store. IRIS
which he did by recruiting the largest
superstores, such as Wal-Mart and Costco, have
has since grown to 164 stores. There are over a hundred
possible number of optometrists.
taken 70% of the market share. Dr. Jean regrets the
locations in Québec with the remainder being mainly
effects this has on the optometrists’ market share.
In
1995,
Dr.
Jean
acquired
a
majority
ownership
in BC and Alberta, as the result of the purchase of 55
interest
in
IRIS;
“this
contributed
to
maintaining
Two years ago, IRIS opened a store in Waterloo,
western optical stores in 2000. The annual sales of
the same vision for over 20 years”, he says.
located near the university that trains optometrists
IRIS the Visual Group is 145 million dollars today,
“IRIS has become the largest network of
for Ontario. This, of course, was to encourage young
with an annual growth of at least 10% in the past
optometrists, opticians and ophthalmologists in
graduates to join in the battle for change. Also,
several years, but only 8% in 2008, “a tough year”.
Canada”, mentioned in all of its press releases. The
the CEO approached the province’s professional
Now, it is time for a breakthrough in Ontario. Their
group combines three models of clinics. Of the 164
corporation and challenged their accusation that
goal is to open 150 stores. However, it won’t happen
stores, there are 64 franchisees, 70 joint partners
the IRIS approach harmed patients. Once again, the
without difficulty. Each province has its own specific
and 30 entirely owned by the Group. IRIS
answer was: “You will push for a sale”.
regulations governing professional corporations.
employs 1306 people, among them 280
“I will never back down”, asserts Dr. Jean. “I told
Since the beginning, Dr. Jean has managed to over
optometrists, 238 opticians, 6 ophthalmologists, and
them that I have one million dollars set aside for
come some barriers, first in Québec, where, in the
676 associates. Dr. Jean describes himself as both
lawyers’ fees and I’m offering it to you to change
80s, it was against the law for an optometry office
a born entrepreneur and a passionate salesman. He
your regulation. Don’t touch my trademark”. IRIS
to operate under a brand name. The first
doesn’t hesitate to claim that IRIS offers the best
opened a second store in Guelph, but even more
quality in the world with the two most
spectacular was an announcement on March 31 of
prestigious lens suppliers, Essilor and
IRIS the Visual Group achieves sales of 145 Nikon. The IRIS network is computerized a new store opening in the heart of Toronto. “It’s
million dollars and shows an annual growth of and has a centralized database that allows not to be arrogant, but we’re doing it to say to the
industry that we are working towards a change
them to compare statistics between its
10% or more over the past several years.
of the business model in Ontario”, explains the
stores as well as its competitors. This
combative entrepreneur. He says that the governments
data also shows the current status in
think like him, but they are reluctant to go against the
clinic in Baie-Comeau was simply called
each province. IRIS target customers are women,
professional colleges. To support his position, he
“Dr. Francis Jean Optometry Clinic”. It was
in the middle and upper classes who also bring
quotes a document from the Competition Bureau of
only later that the name “IRIS” appeared.
husbands or partners as customers.
Canada that recommends optometry corporations
The regulations were initially put in place
His approach is very similar to Jean Coutu’s,
and associations examine the existing restrictions
from a belief that patients would feel pressured
which adopted a commercial approach to sell its
in advertising and reject the ones that go beyond
to purchase eyewear from their optometrist.
pharmacist services and non pharmaceutical
the banning of false and misleading advertising.
“Several years ago, eyewear was not important.
products. IRIS focuses on eyewear products
Another recommendation requires the elimination
The frames were sometimes even hidden behind
generating at least six times the revenue of
of the restrictions forbidding or dissuading the
curtains. And when someone bought a frame it was
professional services alone. “But everything is
optometrists from working with opticians
for seven or eight years. The fashion side of the
interlinked”, explains the CEO, “such as with
within multidisciplinary agreements. On this
business didn’t exist back then. Now, many people
laser eye surgery, for example, which results in
last topic, Dr. Jean acknowledges there are
are buying frames every six months”, emphasized
fewer sales of eyeglasses. We have to offer all the
ongoing guerrilla wars between different eye care
IRIS founder, president and CEO.
possible choices to our customers”. As with Jean
professionals, but he adds, “IRIS has overcome
As majority owner Dr. Jean has virtually all
Coutu, this new commercial approach left the
all that with more than 500 professionals
the voting power of this private company
people in the profession cold at first. However,
in various disciplines, working cooperatively”.
which
has
60
investor
shareholders,
Dr. Jean’s battles have been conducted on both
Le Devoir
Translated from a feature article