Even wondered why red is such a popular colour for restaurants and dinning rooms? Its because it stimulates the appetite. It's also an energising colour and therefore a good backdrop for social situations. However, choose your shade of red carefully as you want to create a warm feeling rather than an angry, oppressive atmosphere see psychology colours.
If your room is dark or small, use colour subtly. It may be more effective to paint or paper one wall red, or simply hang a red-based painting.

Other colour that works well in your dining room are yellow and orange. And neutrals always works well. Avoid pinks and purples as the have a sedative effect and therefore not ideal for eating or entertaining. Blue doesn't affect the appetite but is considered good for encouraging communication and it also gives a clean classic look especially when teamed up with white.
Your should keep your dinning room light and airy for use during the day and take advantage for the natural light you room may have. If you dinning room is naturally dark, have pale or neutral blinds rather than curtains by the window, as these will block the natural light even more.

For evening use you should try to create a warm, mellow ambiance. This can be be avoided by by not using harsh overhead lighting. Opt for more gentle lighting such as lamps and uplighters dotted around the room at different levels to vary the light in the room and use candlelight to create a soft and an intimate atmosphere see lighting for more ideas.
If you don't already have a cupboard in your dining room, this is the time to invest in a sideboard as they are seeing a revival since their heyday in the 1950s. As such, they are now available both new and second-hand. The other benefit of a free standing unit, is that it creates a focal point in the room and provides an extra surface for drinks and nibbles.
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