Street Food and Cheap Eats in Reykjavík

Reykjavík is expensive by European standards, but cheap eating is possible — you just need to know where to look. These are the best value food options in the city, from the famous hot dog stand at the harbour to the best bakeries, food halls, and budget restaurants that locals actually use.

The Hot Dog (Pylsur)

Bæjarins Beztu Pylsur — Tryggvagata (harbour), and several other city locations

ISK 650 as of 2026. Order “ein með öllu” (one with everything) for the full experience: a lamb-pork-beef sausage in a steamed bun with remoulade, raw onion, crispy fried onion, ketchup, and Icelandic mustard (pylsusinnep, a sweet brown mustard different from standard yellow mustard). This is Iceland’s most iconic food at its most iconic price. Bill Clinton ate here during his 2004 visit; the photo is on the wall.

There are now multiple Bæjarins Beztu locations, including at Hlemmur and in the city centre. The original harbour stand on Tryggvagata is the institution — smaller, battered, and usually with a short queue. Open until 1am on weekends.

Bakeries

Brauð & Co — Frakkastígur 16 (also at Grandi and other locations)

The most talked-about bakery in Iceland. Outstanding sourdough bread, butter-laminated croissants with various fillings, cinnamon buns (snúður — the spiral-shaped Icelandic pastry), and seasonal items. From approximately ISK 500–900 each as of 2026. Queue on weekend mornings — opens at 07:00 or earlier on some days, and the best pastries sell out by mid-morning. Worth queuing for. The café space is small.

Sandholt — Laugavegur 36

Long-established artisan bakery on Reykjavík’s main shopping street. Bread, pastries, sandwiches, and light lunches. Items from approximately ISK 500–1,400. Less of a queue than Brauð & Co and with more seating. Good for a sit-down breakfast or lunch. Also has a strong coffee programme.

Deig — Multiple locations

More recent addition to the Reykjavík bakery scene, known for inventive pastries and filled doughnuts. Items from approximately ISK 600–900. The Grandagarður (Old Harbour area) location is convenient for a morning stop before a whale watching trip.

Food Halls

Hlemmur Food Hall — Hlemmur (Laugavegur end)

Opened in 2017 in the old Hlemmur bus terminal, this is the best casual eating in Reykjavík for variety and value. Multiple stalls under one roof with shared seating areas:

• Asian noodle and ramen stalls: broths from approximately ISK 2,000–2,800
• Sushi rolls: from approximately ISK 1,500–2,500
• Mexican-inspired: tacos and burritos from approximately ISK 1,800–2,800
• Icelandic-inspired small plates: flatbreads and seasonal snacks
• Vegan options: grain bowls and vegetable-forward dishes from ISK 1,600–2,400
• Döner kebab: from approximately ISK 1,500

Open daily approximately 11am–10pm. Busiest at lunch and early dinner. The food quality across most stalls is well above average for the price point. A reliable choice for any solo traveller or group that can’t agree on a restaurant.

Kolaportið Flea Market — Tryggvagata 15 (harbour)

Weekend flea market in a large grey industrial building by the harbour. The food section (back half of the building) sells home-cooked Icelandic food, pickled herring, dried fish (harðfiskur — Iceland’s traditional dried cod or haddock, eaten like chips), skyr, Icelandic sweets, and various prepared foods. Saturday and Sunday approximately 11am–5pm. Entry free. The food stalls give one of the most genuine encounters with Icelandic home cooking in the city. Harðfiskur with butter from a stall is approximately ISK 400–700.

Casual Dining

Café Loki — Lokastígur 28

Traditional Icelandic food at accessible prices, directly beside Hallgrímskirkja — a natural lunch stop after visiting the church. Kjötsúpa (lamb soup) approximately ISK 2,200, smoked lamb open sandwich approximately ISK 1,800, plokkfiskur (mashed fish stew with potato and onion, Iceland’s most traditional home dish) approximately ISK 2,400, and a hákarl tasting plate (fermented shark) for the curious at approximately ISK 1,200. This is the right place to try traditional Icelandic food without fine-dining prices.

Noodle Station — Skólavörðustígur 21 and Laugavegur 86

Vietnamese-style beef noodle soup, adapted for the Icelandic market. One of Reykjavík’s most popular budget options and reliably good. Bowl of pho-style soup from approximately ISK 1,800–2,400 as of 2026. Simple menu, fast service, no reservations. Often has a queue at lunchtime. The Laugavegur branch is convenient for the shopping street.

Aktu Taktu — Multiple locations (Suðurlandsbraut and others)

Fast food Icelandic style: burgers, hot dogs, and milkshakes at lower prices than tourist-facing central restaurants. Burger from approximately ISK 1,500–2,200, meal deals from approximately ISK 2,200–2,800. Located slightly outside the main 101 tourist zone but worth the 10-minute walk for the savings.

Fish & Chips by the Harbour — Geirsgata (Old Harbour area)

Several kiosks and small stalls near the Old Harbour serve fish and chips using fresh Icelandic cod or haddock. From approximately ISK 1,500–2,400. A good option after a whale watching tour departs from the same harbour area.

Supermarkets for Self-Catering

Bonus (multiple Reykjavík locations)

The yellow and pink pig logo. Cheapest mainstream supermarket. Stocks Icelandic basics, a deli counter, fresh produce, dairy, and a reasonable selection of prepared foods. Buy skyr (Iceland’s traditional thick dairy product, similar to Greek yoghurt but with more protein) here — it costs approximately ISK 200–350 per small pot and is the best cheap breakfast in Iceland. Several central Reykjavík locations; the Laugavegur/Hlemmur area branch is most convenient for tourists.

Krónan

Slightly wider range than Bonus. Good deli section with prepared salads, sushi rolls (approximately ISK 800–1,500 per pack), and hot food counter. The Hlemmur branch is convenient for the 101 area.

10-11

Convenience stores open 24 hours at most locations. More expensive than Bonus and Krónan but useful for late-night supplies, snacks, and emergency ingredients. The petrol station branches double as convenience stores; there is one on Austurstræti in central Reykjavík.

Melabúðin — 101 Reykjavík neighbourhood

A Reykjavík neighbourhood grocery in the residential 101 district. Better quality produce and prepared foods at a premium price. Favoured by locals for high-quality local and imported ingredients. Worth a visit for the Icelandic cheeses and local products.

Budget Strategy for a Week

The most effective way to eat well without overspending in Reykjavík: supermarket breakfast (skyr, fruit, bread from Bonus), bakery pastry mid-morning (Brauð & Co or Sandholt), food hall or budget restaurant lunch (Hlemmur, Noodle Station, or a hot dog), and one sit-down dinner at a mid-range restaurant for around ISK 4,000–5,500 per person. This approach keeps daily food costs to approximately ISK 5,000–7,000 per person rather than the ISK 12,000–18,000 that three restaurant meals would cost.

Drinking alcohol out in Reykjavík adds up quickly — prices at bars are high (ISK 1,200–1,800 for a pint). Buying from the state off-licence (Vínbúðin, multiple central locations) and pre-gaming before going out is the standard Icelandic approach.