A system for dispensing a frozen beverage. The system includes a barrel having an inner wall and being configured to retain the frozen beverage therein. A mixing system causes mixing of the frozen beverage within the barrel. A cooling system cools the frozen beverage from radially outwardly of the inner wall. A melting system heats the frozen beverage from radially inwardly of the inner wall. The mixing system causes relatively larger ice crystals to move inwardly from the inner wall, and the melting system reduces a size of the relatively larger ice crystals.