CHRIS BEER takes part in a rare interview and answers many of the burning questions about the group he founded, George & Matilda Eyecare. What’s his five-year plan for the business, and what’s yet to play out in the local optometry landscape?
It’s been a little over three years since Mr Chris Beer last sat down for an interview with Insight, and the timing couldn’t be more ideal as the independent optometry network he founded and directs today, George & Matilda Eyecare (G&M), goes through arguably the biggest change in its eight-year history.
It’s 14 days after the settlement of National Optical Care (NOC) and its 26 practices, the largest acquisition since G&M’s very first in 2016, the 12-practice Eyelines business in Tasmania. There’s a massive integration task ahead, especially when you consider there’s another eight practices – to be announced in due course – to introduce as part of G&M’s regular business.
“It’s effectively 35 practices that we’re onboarding; we’re integrating a business nearly 40% of our size in a six-month period – and often these things are a lot harder than people think,” he says.
“NOC has been in the market competing with us and has got many excellent practices, but when you peel back and look at their philosophies, what they do, why they do it, it’s very much in alignment with G&M. Each NOC practice is uniquely branded and they will remain that way; it’s about putting one and two together to make a bigger organisation, but one that gives us the ability to invest more back in our people, the business and communities we serve.”
In many ways, the NOC acquisition embodies G&M’s intentions in the Australian optical landscape: partnering with well-oiled independents, not interfering with their clinical sovereignty, while adding value to the retail and dispensing side of the practice.
These platforms G&M has invested “ridiculous amounts of money” in power vital business functions such as product ordering, payroll, patient recalls and buying power, and are now being used to leverage another allied health stream, audiology.
There’s also ‘Tillie’ – a play on ‘Matilda’ of the company’s name – which is the name G&M has given its supply chain technology. “We can give visibility of every brand, every SKU (stock-keeping unit) to different customer segments, age groups and demographic. There’s also Salesforce that offers strong horsepower in terms of marketing, data analytics tools and so on.”
After a more than 20-year executive career at Luxottica and OPSM – 11 of those as the Asia Pacific CEO – it was this type of technology that Beer saw as the key advantage corporate groups had over independents. It’s expensive kit and largely out of reach for the everyday independent.
“Ultimately, we saw a gap in the marketplace where the independents could have been better supported,” he says.
For G&M, one of the hardest parts has been creating platforms that cater for the many varied needs of practices within the network.
Contrary to what some may think, Beer says there is no “cookie-cutter approach” to G&M’s model.
It’s just one of the many misconceptions and although he doesn’t tap into the rumour mill (he’s a self-confessed “recluse” these days) there’s another important thing to clear up: “Many people have asked, and I can say for certain, George & Matilda’s not for sale. We’re here for the long-haul, we’re about creating a legacy and a pillar in the optometry market.”
Looking across G&M’s more than 120 locations that service 140 communities (when counting outreach work), not one practice has the same supply chain or frames range.
“One of the strengths of George & Matilda is every single practice is different and unique, but that’s also one of our weaknesses,” Beer says.
“It takes more time, care and planning but it doesn’t matter how many variances there are, the technology is able to run every practice. If I was to take you to three different practices, you’d see the same infrastructure in place, but how they go to market is revolved around the personality of the owner and the practice manager – we try to customise that.
“With partners coming on board, they might have an eyewear brand that’s important to them that I’m not familiar with, but I can’t tell them if they are right or wrong. But in six months I can because our technology will tell us. And if it’s a brand that we haven’t been exposed to and it works in that demographic, we’ll take it and put it in other practices.”
It’s this flexibility that Beer says is probably the biggest shift since G&M’s more structured early days.
If anything, it’s a “fine-tuning” of the business model, but brings into focus the challenge of introducing a business of NOC’s size.
Primed for growth
Now the NOC deal is done, Beer says G&M and NOC will continue trading as separate businesses under parent IPIC Holdings. Mr Ant Hudson, who came on board from Audika for G&M’s audiology rollout (more on this soon), has been appointed to oversee the transition as NOC founder and managing director Mr Tomas Steenackers phases out.
Simple economics indicate that once NOC starts contributing to the balance sheet, G&M’s power to acquire more like-minded independents will increase.
Pre-COVID it was acquiring up to 20 practices a year, and the pipeline is primed to recommence at this level from 2025. The technology and systems in place make it a relatively low-cost exercise to bring practices on board – even big transactions like NOC or Mr Dale Rolfe’s nine-practice business in mid-northern New South Wales in 2022.
“You don’t need another CEO or CFO, for example, just a few extra licences and cloud space, but you get fractionalisation of cost and buying power benefits. With an organisation of our size and scale, I’ll be honest and confidently say we can buy any practice in the country and add value in terms of these economies of scale and buying power.”
But it’s not just about business. There is a deeper purpose for Beer. He’s the first to admit he was “pretty tough” and financially driven in the Luxottica days, but as he’s matured it’s become more about impacting the lives of G&M’s 600 employees, promoting from within and adding value to each practice.
“We could stop today, have a great life and pay back the bank, but I’m more interested in creating opportunities for those who’ll be running the business one day. I’m not planning on going anywhere, but my role will be different in the coming years. I’ll still be around on the board and assisting with M&A [mergers and acquisitions], but I’m 58 and the time will come when I don’t want to work seven days a week,” he says.
“The question is, how do you have a more meaningful impact on people? You can do that and still achieve the financial outcomes, but you do it in a way that’s more rewarding and satisfying for everybody. It doesn’t mean there’s not an edge to what we do, but I believe if you’re in a position of leadership, for every person you lead, they’re responsible for 10 people, be it kids, partners, uncles, aunts and family. That’s 6,000 people for us, so we have a big responsibility to make sure we’re making the right decisions.”
‘Biggest threat is ourselves’
Looking ahead, Beer has some interesting, yet unsurprising, predictions for the optometry landscape.
Firstly, he expects further consolidation of the market, but with this there will be greater differentiation. “I think you have to be really clear of what you are and what you’re not.”
He doesn’t see technology disrupting the industry as much as some may predict. While it will have an influence, the struggle of online optical retailers – who have ventured into bricks-and-mortar to become omni-channel operators – has proven the value of face-to-face, personalised care.
“In the wholesale market, it’s logical to expect some of the smaller guys to start consolidating and joining their power,” he says.
“And in the next five years, we’ll see who the new number two is going to be globally [from EssilorLuxottica]. There’s no market in the world where one and two get together and a new number two doesn’t emerge over time.”
In terms of G&M’s outlook, the audiology rollout is an exciting new component, taking it from an eyecare to a “sensory” business.
Beer says optometry and audiology are a snug fit, given eyesight is the most valued sense, followed by hearing. Serving near-identical patient demographics, G&M can leverage its optometry database to create a new service and revenue stream. And although there are some costs to retrofit and staff the practices for audiology, it benefits from the shared premises with optometry, as well as the utilities and back-end system costs.
After starting with its Leichhardt practice in Sydney in mid-2023, audiology is now a fixture at G&M’s Gosford practice on the NSW Central Coast, and Figtree, an inner western suburb of Wollongong.
“We’ve got a world-class audiology service and have run a whole bunch of experts through who have given us the tick, saying they haven’t seen this level of care anywhere. We’ve raised the standard and are happy to be challenged on that by anyone,” Beer says.
“The three practices with audiology have different demographics, and now we’ve learned from that, the rollout plan is mapped out.”
The goal is to have audiology available across the entire network. In cases where a dedicated audiology space isn’t feasible, the practice will offer screening and refer patients to another G&M practice with full audiology services.
“There will be a hub and spoke model, which is common in the industry. It’ll take a couple of years, but audiology will be fully integrated throughout our G&M network, and NOC too,” he says.
As G&M matures, the challenge for the next three to five years is crystal clear.
Acknowledging some potential naivety, Beer believes there are few external forces that can now get in the way.
“I think our biggest risk is ourselves. If we do what we say, provide an amazing experience and execute well, we’re fine, and then other opportunities will present themselves. Everything is in our hands,” he says.
“Pre-COVID we were acquiring 15 to 20 practices a year. Next year, we’ll get back to that level. That, in addition to the audiology rollout and integrating NOC will keep us busy and laser-focused.
“I keep saying to my team, ‘I just want a boring life’ – and what that means is focusing on the things that matter and executing them well. You don’t want chaos or surprises, you just want to be really pragmatic about it.”
More reading
Why the George & Matilda Eyecare model works
Life as an early career optometrist at George & Matilda
Rolfe Optometry Group’s nine practices join George & Matilda
