Coffee grinds can be a great alternative to chemical fertilizers. Some of your local coffee houses even give their used grinds for free. That's an opportunity to prevent it from becoming an addition to your local landfill.....and it's free fertilizer!
For some reason, I am less than enthusiastic about eating food that chemicals were poured onto and apparently more and more people feel the same way as I notice an increase in the availability and selection of foods labeled with the word ORGANIC.
If you're already a composter, you probably already add coffee grinds as well as other fruit and vegetable waste to your compost bin (See the City of San Jose's site to get one for yourself http://www.sjrecycles.org/residents/home_compost.asp or if you are not a San Jose resident, check with your city or county). As an alternative, that is to say if you don't have a bin, sprinkle the coffee grinds onto the soil around the plant so that it is within the plant's root zone. Although you could mix it into the soil, leaving it on the surface works just as well and saves you time. Either way as the grinds are slowly absorbed into the soil we waste less and nurture more.