Abstract: Disclosed herein is a bifurcated beverage preparation system for use with beverage capsules having frustoconical side walls, first and second sealed ends for containing a predetermined volume of a flavoring agent, a beverage preparation head including a housing having a liquid inlet and a beverage delivery spout, a retractable holder for positioning a beverage capsule along a liquid flow path extending between the liquid inlet and the beverage delivery spout, a hydraulically operated plunger for engaging and puncturing the beverage capsule when positioned along the liquid flow path, thereby exposing the flavoring agent contained therein, and a hydraulic operating unit mounted remotely from the housing and the faucet spout, operative to supply a liquid at a predetermined temperature and under a predetermined pressure to the liquid, thereby causing a flow of the liquid along the flow path through the beverage capsule, thereby delivering an outflow of a flavored beverage.