Ice/beverage dispenser with in-line ice crusher and method for operating the same

An ice crusher is attached to an ice dispenser or to a combined ice and beverage dispenser. The ice crusher occupies minimal space in order to fit the dispenser into an existing space on a serving counter or in a beverage dispensing area. The ice crusher may also elevate the ice. In embodiments using this technique, the outlet of the ice from the ice crusher is higher than the ice inlet. As the ice flows from a source of ice, such as an ice bin, the ice is elevated while it is being crushed. The ice then flows from the outlet of the ice crusher down an ice chute or other outlet of the ice crusher, into a cup or container as desired. Other embodiments convey the ice without lifting it, and still other embodiments dispense either crushed or cubed ice, as the consumer may select. In one embodiment the selected crushed ice or cubed ice are both dispensed though the same ice dispensing chute. A retrofit kit may be used to add an ice crusher to an existing ice dispenser, or to an existing combined ice and beverage