THE boss of Zonal Retail Data Systems has hailed a deal to supply the 1600-strong Mitchells & Butlers (M&Bs) pub group as "the biggest hospitality contract in the UK" for a company in its field.

Zonal plans to expand its workforce by 10% by adding 30 jobs at its headquarters in the Scottish capital as a result of the multi-million pound win.

It means Zonal now supplies electronic point of sale (EPoS) systems to the full estates of the UK's four biggest managed pub operators, which as well as M&Bs includes Spirit Group, JD Wetherspoon and Greene King.

Zonal was born in 1979 when its family owners developed a system to control shrinkage at their Midlothian hotel.

Managing director Stuart McLean said: "As a contract, it is the contract to win in UK hospitality. It is as important as that really.

"It completes the set because that gives us the top four managed pub companies in the UK."

Zonal won the contract after a successful pilot in a limited number of M&Bs outlets, which trade under brands including All Bar One, O'Neill's, Harvester and Vintage Inns. It is now rolling out EPoS solutions to the rest of the estate, which includes 75 outlets north of the Border.

Zonal, which employs 175 of its 300 staff in Scotland, aims to recruit 30 staff as a result of the M&Bs win, but could add more as it continues to grow.

Stating that the deal reflects growing optimism in the hospitality sector, Mr McLean said: "We are certainly going to increase our workforce quite considerably."

M&Bs said the Zonal deal is in line with its policy of adopting the same technology platform across its business, while tailoring the systems to the needs of each of its brands. With the new terminals quicker than before, it said the technology will allow it to offer more promotions, faster payments and greater administrative efficiency, ultimately leading to improved customer service.

Zonal will supply M&Bs pub estate with a single core system which can be tailored to the needs and service style of each individual outlet.

Mr McLean added: "It's around speed, consistency, improving their customer service and improving their controls so they can manage their business better with better data."

Noting that research and development was a "never-ending process" for Zonal, Mr McLean revealed that it was now supplying M&Bs with iPod touch devices, which are used by staff to take orders at tables.

He added: "They [M&Bs] have moved a lot of their service out to the customer and are using iPod touches. That is a key development we have been working with M&Bs [to deliver]."

Martin Taylor, director of business change and technology at M&B, said: "Zonal is helping us deliver innovation in technology and business processes to support our needs.

"They share our vision, understand our business and are one of the strongest players in the UK market."

The M&Bs contract comes after Zonal acquired Midlands-based digital marketing firm TXD in April. In its most recent accounts available at Companies House, Zonal reported pre-tax profits of £989,388 in the year ended June 30, 2012, compared with £2.72 million the year before. Group turnover rose to £36.2m from £29.9m.

The period saw it make a "million pound plus investment" in its warehouse, logistics and manufacturing facility in Livingston. It also developed an innovation centre in Oxfordshire, where it allows clients to view how its technology works in the hospitality sector.

Zonal's Aztec EPoS software is used by more than 6000 businesses, including pubs, bars, restaurants, hotels and leisure venues.