A beverage and ice dispenser that dispenses both beverages and cubed or crushed ice. Beverages are dispensed from dispensing heads. Cubed ice is stored in a bin. A duct leads from the bin. The duct has first and second outlet openings. A chute leads from the outlet openings. The chute has a single discharge opening from which ice from both duct outlet openings is discharged. An ice crusher is between a first outlet opening and the chute. A gate opens and blocks the flow path from the second opening into the chute. When cubed ice is desired, the gate is spaced from the second opening so that cubed ice is discharged from the duct and chute. When crushed ice is desired, the gate closes the second opening. Ice flows out of the first opening, is crushed by the ice crusher and discharged through the chute.