Los Angeles Frozen Yogurt Market Goes Cold

For the past few years, the Los Angeles area has seen a rise in popularity for frozen yogurt chains.  Research from the Los Angeles Business Journal indicates that there are more than 250 individual “fro-yo” shops selling the tart dessert throughout Los Angeles County.

But recently, the shops have seen a downturn in business.  Local giants Pinkberry Inc. and Red Mango Inc. have been shuttering a few of their stores in the LA area,  and are very cautious about expanding to other areas.  Several independent stores have closed completely, including Silver Lake, Tutto Tutti in Hollywood and Blue Mango in West Hollywood.

“The frozen desserts category is not growing and is flat at best, and the premium segment – the Cold Stones and Pinkberrys – has tapered off,” said Darren Tristano, executive vice president of food industry research at Technomic Inc.  “In these recessionary times we’re not going after those indulgences as much. People consider McDonald’s to be recession-proof. I don’t think people think Pinkberry is recession proof.”

Dan Kin, chief executive of Red Mango, is not sure if the recession is the reason for the slowdown. “There’s a natural slowdown in the winter as one would expect with frozen yogurt, so we don’t know if it’s because of the weather or the economy,” he said.

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