Usually when you get side panels you automatically have space on the sides. If you have a full depth cabinet on the top, you automatically have space at the top and in most cases you will have leave at least 1 inch of extra room for the back of the refrigerator, so there is always air circulation since everything is enclosed. In the 70's they use to make a small recessed space behind like Fred said, today you don't have to do that, most Ref have flat backs, recessed wiring, not to mention the supply for ice-maker also comes in a flush mounting kits for the wall... so pretty much everything is recessed and only space you need is for air circulation and 1" is more then enough. In addition, if you make recessed area now and you push ref to far you will never get your doors open so doing all that is a waste of time, in addition most manufacturers starting to make 30" side panels.

I would suggest you to go for either actual stone cladding or ceramic wall tiles. Natural stone cladding provides a rich look to your walls and last comparatively longer than wallpaper. Although initial cost might appear to high but in the long run, it is the cost-effective solution for your walls as it requires very low-maintenance. Going for wallpaper would not be a very nice option especially if you are looking for something long-lasting. They not only get damaged easily because of moisture or other factors but would also stain your wall when they come out. Ceramic tiles is also a nice option to go for. You can get a huge variety in terms of size, colour, pattern etc. If you are looking for not-so-expensive option then ceramic mosaic tiles is the viable option. However, you should know that ceramic tiles take quite a long time to warm up during winters and cool down during summers. Wooden Planks would make your interior look elegant but it is very susceptible to temperature change and can easily get damaged with water. Also it might not go too well with modern architecture. Hope this helps. Thanks & Regards Kapil Surana

You can get a custom wall art done , glass with bronze, glass painting, that wall should be a center of attraction, anyone walks. I have done this for a site, it works wonders, guest appreciate a unique feature. this can be done as DIY project on weekend also. these are some some real world executed ideas. cheers mate.

that is what i have added if you can see the pic above.. want some suggestions on partition that i can use between dining and sitting