C.H.
My daughter just turned 7 and this was our off year for parties. We do parties every other year to save money. The year we do not plan a party we do gifts and take them somewhere. I took my daughter to Libby Liu and she loved it. You could easily do hair, nails and make up at home with the help of a few friends. Also I thought about this when I was there.. All the little girls love Hannah Montana you could borrow a Karoke Machine and let the girls do Karoake.. My daughter loves to sing and dance to Hannah Montana and Highschool Musical. Also they could play like Highschool Musical Twister moves etc.
As for food let them make their own pizza. You can buy the pre-maid pizza dough or make your own from the jiffy Pizza box. It is so simple.