Interactive manual cup dispenser

A use-activated cup dispenser capable of sensing the manual removal of individual cups therefrom is provided. Manual removal is understood to include physical contact between a hand and a cup and extraction of the cup from the cup dispenser by the user. The invention includes a decorative cover including a housing disposed between first and second covers, at least one switch mechanism, a control circuit, and at least one active element including light elements, motor elements, scent dispensers, and/or audio elements. The decorative cover further includes an opening along one end. One or more switch mechanisms are provided along the first cover adjacent to the opening. The functionality of switch mechanisms includes direct contact, indirect contact, and non-contact between the cup and an optical or mechanical switch. The control circuit could be disposed on a circuit board and controls the functionality of the active elements. Active elements are attached to the decorative cover and are actuated when a cup interacts with at least one switch mechanism. Active elements enhance the entertainment and interactive properties of the cup dispenser.