Great question. I have been wondering the same thing lately, as I have a ton of the bags. I assume Starbucks won't recycle them.

On the same line of thinking, would you folks be willing to share just how you use the grounds? I've read various things, some conflicting, and would appreciate info from 'real life users'.

Also, are there any contraindications about using coffee grounds where a small dog has free roam? TYIA

I only have one bag so far but I was thinking of using them for an herb garden.

zigzag - Some people spread them around the garden. I put them in my compost bin. They really give the soil a nice texture. It shouldn't bother your dog - particularly if you scratch it into the soil.

I spread the grounds over my lawn & garden. I have put many bags in the compost pile. The worms in the worm bin like a small bit as well.

Use the grounds as a soil additive .
UCGs add organic matter to both compost piles or gardens .
Most people fling them around lawns and gardens . That way the UCGs don't pile up too much . If you dump a bag directly around plants , the grounds can often block water when they are that thickly applied .
UCGs are relatively low in acid and have trace amounts of nitrogen . Plants seem to adore it .
Use the grounds of both coffe and tea including paper filters and bags . It all breaks down and becomes compost .

I don't know that they would harm your dog, but one of my dogs has been in the garage after I have sifted a big batch to put on the front lawn, and he will eat some of it. It's been a while since I did it, an it may have only been the errant beans that flew out, but I know there was coffee product eating going on. Then again, I have 2 lab mix dogs, they eat lots of things, food product or not.
FWIW

So - back to the original question .
I have NO problem using the grounds .
What else can I do with the bags ?

I've split them sideways to make a big sheet of silvery whatever-that-stuff-is, poked holes in it, & used a couple to line cocoa-coir or peat-moss lined hanging baskets, trimming off the excess so it doesn't show.

(If you put potting soil directly into such a hanging basket, the coir/peat-moss/dried moss acts like a wick, pulling moisture out of the soil & drying your plants).

Got some more today - 5 lb. bags - good and sturdy .
Excellent idea sylviatexas .

I've wondered about those silver bags, too. Like the idea of using them as pots. Nicer than a pot ghetto of institutional size tin cans.
I could see hanging the bags in trees to frighten birds and maybe squirrels.
As for the UCG's I've been dosing my Sago palms (cycaids) with them in an effort to save them from death by Aisian cycaid scale which is epidemic here in Florida. After only a couple of weeks, it seems to be working. I will continue with the Safer oil spray though if I see a surge of infection. It would cost me a pretty to replace three large Sagos! cora

I just started using them for the scoopable kitty litter, I have one rolled down to fit inside a gallon ice cream bucket. I was having to take the trash out half full to keep the smell down.

I like that idea sylviatexas. Thanks.