I've always loved the retro diner look and I think it translates really well into kitchen decor. I chose a mostly red & white color palette with a few modern accents thrown in. I really like the table and chair in the original photo so I think I'd keep both of those.
I associate holiday entertaining with elegance. I like traditional elements and colors, but I also like to throw some whimsy in the mix to keep things from feeling stuffy. I envisioned using the balsam garland as a table runner.