One way to add more counter space might be to add a small peninsula to the end where the microwave is located now, though it's hard to tell if that might be a bit tight.

Are you considering reworking the layout entirely?

Hi Emily. Thanks for the idea. It might be a little tight. We could rework the entire layout. The tricky part is the weird window that overlooks a mudroom (pic #2) and the doorway (with the babygate); they break up the flow of that wall. We're not sure how or what to do with it. If you have any other thoughts we would love to hear them:) Thank you!

You definitely have a problem.....I am wondering if you could recess the fridge into the wall where you have the alcove with the teacups hanging. The area to the left of the babygate. The fridge would basically be in the other room with the an opening in the wall so the front of it is flush with the kitchen wall. That room behind the alcove is the mud room correct? Could open that wall and incorporate that area into the kitchen for more options?

Is there just a wall beyond the end of the counter with microwave? Maybe take a few more pics of all wall spaces...