I miss the large banquette we had in our old home. All 5 of us could easily sit there, and we could squeeze in several kids when entertaining.
Our current kitchen has a counter that seats only 3, so our 3 kids eat breakfast and sometimes lunch there, but we can't all eat there together. We use the separate dining room for dinner, but we did that in our old house too even though our eat-in kitchen had plenty of room for us. We also have a table and chairs in the sunroom, so we use that when we entertain. Kids go in sunroom and adults in dining room. However, we're planning on reconfiguring the kitchen to add a long bar with bar stools on the wall between the kitchen and family room.
Could you get rid of some cabinets towards the back of the kitchen, and put in a banquette against the wall, then a small table, with 2 chairs on the other side? That should give you seating for 5, since 3 could cram into the banquette. Put storage in the banquette bench.
Or cut through the wall between the kitchen and dining room to put a small counter with bar stools? Maybe 3 small bar stools on the dining room side, two on the kitchen side, and one at the end? You could do double base cabinets if you don't want to lose storage space.
Good luck whatever you decide!