Where to Eat in Reykjavík: Neighbourhood by Neighbourhood
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Knowing which part of Reykjavík to eat in matters — the city is compact but the quality and character vary noticeably by neighbourhood. This guide breaks down the main eating areas, with quick picks in each, so you can make a decision based on where you’re staying or what you’re doing rather than scrolling a ranked list.
101 Reykjavík (Downtown)
The 101 postcode covers Laugavegur, Bankastræti, and the surrounding streets — the densest eating area in the city.
Quick picks:
- Brauð & Co (Frakkastígur 16) — Sourdough bakery. The best croissants in the city, from approximately ISK 500–800. Queue forms on weekends.
- Stofan Café (Vesturgata 3) — Living-room-style café with good coffee and light food. Locals use it daily.
- Grillmarkaðurinn (Lækjargata 2a) — Fine dining with premium Icelandic lamb and langoustine cooked over lava rocks. Mains approximately ISK 4,500–8,000. Book ahead.
- Dill (Þingholtsstræti 5) — Iceland’s most acclaimed restaurant. 9-course Nordic tasting menu, approximately ISK 19,900 per person as of 2026. Book weeks ahead.
- Reykjavík Roasters (Brautarholt) — Specialty coffee. One of the better cups in the city.
Best for: Fine dining, specialty coffee, evening drinks with food.
Grandi (Old Harbour)
The harbour area northwest of downtown has developed into Reykjavík’s best casual dining cluster over the past decade.
Quick picks:
- Matur og Drykkur (Grandagarður 2) — Modern Icelandic cooking from traditional recipes. Mains approximately ISK 4,200–6,500. The most interesting food for the money in the city. Book ahead.
- Coocoo’s Nest (Grandagarður 23) — Reykjavík’s most consistent brunch spot. Eggs Benedict and pancakes approximately ISK 2,800–3,800.
- Sægreifinn / Sea Baron (Geirsgata 8) — Famous lobster soup (approximately ISK 1,600–2,000 per bowl). An institution on the harbour front.
- Café Haiti — Coffee and sandwiches on the harbour. Flat whites are reliably good.
Best for: Brunch, mid-range Icelandic food, seafood. A good reason to walk 15 minutes from downtown.
Hlemmur
The former bus terminal on the east side of 101, converted into a food hall. Multiple stalls in one space.
What’s here: Nordic dishes, Asian noodles, sushi, Mexican, burgers. Most stalls open from approximately 11am. Dishes approximately ISK 1,500–2,800.
Best for: Quick weekday lunch, groups with different preferences, budget-conscious eating without sacrificing quality.
The Harbour Front (Near City Hall)
Bæjarins Beztu Pylsur (Tryggvagata) — The hot dog stand operating since 1937. Order “ein með öllu” (one with everything): mustard, ketchup, remoulade, raw onion, and crispy fried onion. ISK 600–700. Open until 1am on weekends. This is genuinely worth stopping for — not a tourist cliché, just a good hot dog.
Supermarkets and Self-Catering
Self-catering at least one meal a day is the most realistic way to keep food costs manageable in Reykjavík.
- Bónus — Cheapest mainstream supermarket. Multiple central locations. Recognisable by the yellow and pink pig logo.
- Krónan — Slightly wider range. The Hlemmur branch is well-placed for the 101 area.
- Melabúðin — Better-stocked neighbourhood supermarket, popular with locals for quality produce.
Frequently Asked Questions
- Which neighbourhood in Reykjavík has the best restaurants?
- The 101 district (downtown) has the highest concentration — Bankastræti, Laugavegur, and the streets off them cover everything from fine dining to casual cafés. Grandi (the Old Harbour area) is a close second, with a cluster of good mid-range options and the best brunch spots. Hlemmur, the converted bus terminal, is the best single destination for a quick, varied lunch.
- How expensive is eating out in Reykjavík?
- Reykjavík is one of Europe's more expensive cities for eating out. A main course at a mid-range restaurant costs approximately ISK 3,500–6,500. A pizza or burger is approximately ISK 2,500–3,800. A pint of beer is approximately ISK 1,200–1,800. Supermarkets (Bonus, Krónan) are significantly cheaper and well-stocked — self-catering lunches are a realistic way to reduce costs.
- Is there good vegan food in Reykjavík?
- Yes — Reykjavík has a decent vegan scene relative to its size. Garðurinn, a vegan restaurant on Klapparstígur, is well-reviewed. Most mid-range restaurants have vegetarian and vegan options. The Hlemmur Food Hall has multiple stalls with good plant-based choices.
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