Sometimes in order to know what to store in your kitchen cabinets, it is easier to start with what not to store in kitchen cabinets. Here is a basic list of items either too bulky, too awkward, too frequently used, or even too infrequently used to store in kitchen cabinets.
Unless you are entertaining a household of 20-plus nightly, serving trays can go into storage (I like a plastic storage bin) and retrieve right before the party for cleaning. They are bulky and hard to fit into cabinets, so it makes sense to store them offsite if you have limited space. I store mine in the dead space above the refrigerator.
TIP: They can also be used as decoration.
Linen napkins, fancy place mats and tablecloths can be moved to the linen closet. No need to take up space and mix in fabric pieces with your food and appliances.
TIP: If they must be stored in the cabinet, place them on the highest shelf so nothing drips or spills on them.
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Appliances You Never Use
Popcorn makers, ice cream makers, waffle irons -- if you use them, great. If you registered for them and haven't touched them in 5 years, it is time to sell or donate these appliances. (See also: How to Organize Kitchen Appliances)
If you are not ready to part with them (example: You registered for an ice cream maker and plan to have children someday), store them offsite in a storage space--like the basement or attic, or organized in a bin in a closet.
Appliances You Use Daily
Move these to your counter top. The few seconds it takes to grab them out of the cabinet, un-wind the cord, and fit them back on the counter for use can be better used.
Once again, unless you are entertaining constantly, these can be stored in a labeled bin in a storage space like your basement or attic.
Open Food Containers
I try to keep most food in my pantry and my refrigerator. I keep a small amount in cabinets, and I have found it is about a million times easier to maximize the storage space in my kitchen cabinets if any food in there is in a glass or plastic food storage container, preferably a square one.
It is a pain to have to sift through bags of open food when you want the crockpot in the back of the cabinet.
I recommend storing food like flour, sugar and coffee in the cabinet because they are easily stored. Store the bags of chips and cereals for the pantry so they are not making a mess.
Outdoor Serving Pieces
Move these to your kitchen storage area with the aforementioned party decor. Even if you have a large kitchen, you never want items you use once-in-a-while crowding out items you use regularly.