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SEATTLE -- Starbucks Corp. plans to raise the price of its coffee by about five cents a cup in an effort to offset rising costs.

The price increase, which takes effect Oct. 3, applies to brewed coffee, espresso beverages and every other drink Starbucks makes behind its coffee bars at all company-owned stores in the U.S. and most of its stores in Canada. It doesn't apply to bottled beverages. Starbucks also plans to raise the price of 23 whole-bean coffee varieties by about 50 cents per pound.

The coffee giant last raised prices on its drinks in 2004 and raised the price of its whole-bean coffees about nine years ago. Starbucks spokeswoman Valerie O'Neil said that rising business costs, including for health care and raw ingredients, prompted the price increase.

Health-care costs are a big expense for Starbucks. In an interview this week, Starbucks Chairman Howard Schultz said that by the end of fiscal 2006, Starbucks will have paid more for health insurance than for coffee. Prices of some types of commodity coffee have climbed more than 9% from a year ago.

The price increase comes as Starbucks faces growing competition in the coffee market. McDonald's Corp. launched a more robust blend of coffee this year and Dunkin' Brands Inc.'s Dunkin' Donuts chain plans to triple the number of stores it operates in the next three years.