An apparatus for brewing and dispensing beverages such as coffee, said apparatus comprising a water tank comprising a water inlet configured for fresh water supply, and one or more heater elements, said apparatus comprising a water tank outlet, which is connected via a hot water channel to a water faucet a brewing chamber and a dispensing nozzle, wherein said hot water channel has at least one section forming a flow path for hot water, said at least one section of said hot water channel is configured such that it is in direct thermal contact with the periphery of said water tank along the entire length of said at least one section of said hot water channel, and such that said at least one section of said hot water channel extends substantially parallel to the periphery of said water tank.