A beverage dispensing system that can dispense both cold and hot drinks from either cold drink capsules or hot drink capsules. The cold or hot drink capsule is inserted into the system, and the lid is manually closed. if a cold drink capsule has been inserted, a mechanism cracks the capsule along a predetermined seam, injects cold mixing fluid into the capsule, and then rotates the capsule to pour out or further flush out the cold drink into a cup. If a hot drink capsule has been inserted, the lid is closed, and a rotating needle pierces the top of the capsule. The capsule is then punctured from the bottom. Hot water can then be injected into the top of the capsule, and the hot drink can be removed from the bottom into a cup.