A refrigeration system for a frozen product dispenser is controlled to have a variable cooling capacity that is determined by variable cooling load demands of the dispenser. This is accomplished, in part, by providing the refrigeration system with a variable speed compressor and one or more adjustable expansion valves for metering refrigerant to associated evaporators that are heat exchange coupled to associated freeze barrels of the dispenser, and by controlling the metering setting of the expansion valves and the speed of operation of the compressor in accordance with the cooling load demands of the dispenser. The arrangement provides for efficient operation of the refrigeration system from an energy standpoint and for a reduction in on/off cycling of the system.