• MSNBC, Los Angeles Times, Tuesday, July 21, 2009 10:37 AM

Growth in most retail sectors may be chilled by the recession but frozen yogurt shops are as hot as the midday sun in Southern California, Katrina Brown Hunt reports. The frozen dessert industry has grown by 16% since 2003, according to Market-Research.com, to become a $12.1 billion business -- and much of that growth has been from frozen yogurt.

Fro-yo outlets -- especially pump-it-yourself shops -- are expanding at a rapid pace, challenging "full-service" stars Pinkberry and Red Mango, Brown Hunt writes, as well as an increasing number of mom-and-pop (or just dude-and-dude) establishments. "The frozen yogurt business is kind of like basketball," says Amit Kleinberger, ceo of self-serve chain Menchie's. "It's a great sport, and so everyone wants to compete."

But the frozen treat business may be a zero-sum game, as Cyndia Zwahlen reports in the Los Angeles Times. Ice cream truck sales are down as the recession ices discretionary spending. "I have a good route, but people always complain, 'Why so expensive? I can't buy right now because I've been laid off from work for three months,' " says Ricardo Lara. Plus there's more competition as laid-off workers, lured by low start-up costs and minimal skill requirements, get into the business.

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