A cup dispensing system in an automated dispensing beverage dispensing system receives a first supply of cups at a first dispensing assembly with a first selective release device and receives a second supply of cups at a second dispensing assembly with a second selective release device. The first and second dispensing assemblies respectively coincide with first and second indexed locations on a cup conveyance system. The cup dispensing system operates to dispense a first cup from the first dispensing assembly to the first indexed location and a second cup from the second dispensing assembly to the second indexed location.