A small pit group. Or better, a pair of crate style loveseats. There are many options in crate style but generally they are quite good about keeping the dimensions both modest and explicit - a loveseat that is billed as 52" wide will be EXACTLY 52" wide, front to back, top to bottom. No curves or bulges. Tuck an end table into the corner, put a love seat along either wall from that and there you are, instant pit group.
Can't sleep on it, but many crate style manufacturers offer their love seats as hideaway sleeps, so you could have one that popped out into a twin bed, no problem.
This is a pretty straightforward way to put a lot of seating into a VERY small space, but I have to ask: seriously? Seven by seven? Is this for a tiny house?