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Iceland is not a country known for its food… and to be honest, it is one of the most expensive places to eat out, or go to the grocery store for that matter.
But that doesn’t mean you shouldn’t try local food. In fact, some of my favorite experiences in Iceland were food related.
You just need to know what is available, so you can pick what is worth it for you.
In this article you’ll find my first-hand experience, covering unique Icelandic snacks, interesting and tasty restaurants as well as food you should try that you can only find here.
🥳 TESTED TOP PICKS FOR ICELAND
- 📲 Best eSIM: Ubigi eSIM (my top pick for convenience and stability) 10GB for 7 days for $11 – Also get 10% your plan with discount code BACHELORTRAVEL
🏨 Best hotel in Reykjavik: KEX HOSTEL – awesome location, great prices for private and shared rooms
🚌 Airport transfer: Keflavík Airport → Reykjavík Bus (Flybus) — cheapest and most straightforward way to get into the city after landing
🍽️ Food experience: Reykjavík Food Walk (guided foodie walking tour) — if you only do one tour in Reykjavik choose this one!
How expensive is food in Iceland?
Food in Iceland is quite expensive.
If you come from London or San Fransisco you might find it normal.
If you come from anywhere else, you’ll notice it straight away.
Even casual meals like pizza and burger can easily go above $40+ per person, just by adding a soft drink.
Alcohol also tends to be more expensive than people realize – however, I don’t really drink and I’m usually in the country for work, so I’ve never been bothered by it.
💰 BUDGET
- Iconic eat: Bæjarins Beztu
- Dessert: Loo.koo.mas Greek-inspired and owned doughnut shop in the city (amazing!)
- Chocolate: Braun Chocolate Wafers from the supermarket
- Skyr in all its forms everyday
💰💰 SPLURGE
- This food tour in Reykjavik
- Friðheimar Tomato Farm
- Black Crust Pizzeria in Vik
- 7 course meal at Tapas Barin
What to Try in Iceland and Where
1. Skyr the classic yoghurt
- 📍Supermarkets, breakfast at hotels or anywhere else. The shop pictured is inside the Old Dairy Food Hall in Selfoss.
- 💵 About $5 for a tab of yoghurt but depends on type and brand.
Skyr isn’t yogurt, it’s Icelandic dairy wizardry. Thick, tangy, high in protein and not overly sweet, it’s a staple you’ll find in every supermarket and gas station. Blueberry is my go-to, but try a few and find your favorite. Some have more sugars than others but they are still a healthy and affordable option for breakfast.
2. Icelandic chocolate and snacks
- 📍The best place to shop is Bonus or Kronan. Bonus is the staple cheapest option if you are on a budget.
Due to Iceland’s high prices, stocking up on snacks is a smart move and honestly, gas stations and supermarkets are part of the travel experience here.
I always pop into a local supermarket or gas station when I’m in a new country, and Iceland didn’t disappoint. You’ll find Kókómjólk (Iceland’s beloved chocolate milk), Prince Polo bars, and plenty of strange-but-delicious licorice and chocolate combos that Icelanders love.
3. An Icelandic hot dog
- 📍Bæjarins Beztu Pylsur or Víkinga Pylsur next to the church.
- 💵 About $5 or 650 ISK
Bæjarins Beztu Pylsur is an iconic hot dog stand in Reykjavik that has been serving up Iceland’s favorite street food since 1937 — and yes, it’s worth the hype. It’s also likely the cheapest meal you’ll have in Iceland.
There are a few locations around the capital now, but the original one near the harbor still draws the longest line. Go for “eina með öllu” (one with everything): ketchup, mustard, remoulade, raw onions, and crispy fried onions. Anything with the crispy onions is a yes for me.
The other one I like is found near the church. I think their hot dogs are equally as good, and you can try a lamb one for something different.
4. The famous tomato soup
- 📍Friðheimar
- 💵 $28 for all you can eat tomato soup and bread buffet.
The tomato farm Friðheimar offers a greenhouse dining experience where tomatoes are grown year-round.
Their all-you-can-eat tomato soup is iconic, served with fresh bread and basil plants on the table. I have been four times now and would go back in a heart beat again.
There are different ways to book and enjoy this experience, either through the buffet (refills of tomato soup and endless bread). Or as a proper dining experience.
You’ll also get a tour of the greenhouse so you can learn about vegetable cultivation on the island.
They have also expanded into a new restaurant area (too many people) but I still prefer the original greenhouse seating experience with the endless bread supply!
5. The fermented shark…
- 📍Cafe Loki + Íslenski Barinn
- 💵 A taste of shark + a shot will set you back about $24.
Known as hákarl, this traditional food is definitely an acquired taste.
You’ll usually get it as a small cube with a shot of Brennivín (Icelandic schnapps). Most people hate it. But trying it is a badge of honor. I would say it is… not something I want to have a lot of.
Fermented shark (and other meals in Iceland) is also highly contested as an unethical choice.
A lot of Icelanders don’t have it nowadays, and some consider the habit survives due to tourism.
6. Puffin and tapas
- 📍 Tapas Barinn
- 💵 Expect to pay around $120 for one of the tasting menus that include 6-8 tapas and dessert.
If you’re going to splurge on one great meal, make it Tapas Barinn. This cozy underground spot in the heart of Reykjavík serves Icelandic-style tapas with a twist, and yes, it’s as fun as it sounds.
You can order à la carte or go for one of the tasting menus, which is what I did and highly recommend. Some of the more adventurous options include puffin, whale, and camel. But don’t worry, there are plenty of more classic crowd-pleasers too.
The atmosphere is dark and candlelit, the staff are lovely, and you’ll leave full and happy. If you’re traveling as a couple or group, it’s a great way to sample a little bit of everything.
Similar to fermented shark, the idea of having puffin does not sit right with everyone.
7. Cafe and brunch
- 📍 Skool Beans Cafe
- 💵 Coffee and a bagel will be about $15-$20 which is very reasonable
Along the Ring Road, near Vík, you’ll find a bright yellow converted American school bus that sells coffee and snacks. It’s such a random but charming pit stop for good coffee and bagels. It is not just an interesting setup, but the food is actually great!
8. Pizza in Vik
- 📍Black Crust Pizzeria
- 💵 $70 for 2 pizzas at Black Crust or slightly cheaper at Restaurant Suður-Vík
There are a few great places for pizza in Vik. One is the famous Black Crust Pizzeria that does a charcoal activated pizza crust that is… black.
It is very popular, busy and pricey. Expect to pay around $70 for 2 pizzas and up to $100 for 2 people, if you get drinks as well. The pizzas are insanely good.
Another place I loved that is less expensive is Restaurant Suður-Vík. It has a lovely view of the town, great and cozy decor and the menu is also easy and comforting. Pizzas are well priced at about $28 for the large ones.
9. Geothermal Bread
- 📍Need to book as activity (usually on Golden Circle tours)
- 💵 Paid as part of activity
Hands down one of the most local, memorable experiences I had in Iceland. You can book it as an experience with he Laugarvatn Fontana geothermal bread‑baking tour.
You watch rye dough being prepared, then buried in the warm earth for 24 hours to bake using geothermal heat. Then you get to taste the bread (still warm), with butter, smoked trout, and sometimes other local accompaniments.
10. Icelandic lamb soup
- 📍Soup Company
- 💵 $25-$30 per person fora bowl of soup + refill
Another gem of a place that you can find in Vik is the Soup Company.
It started as a food truck and got really popular (for reasons that are obvious) so now it is housed right next to the original Lava Show, which I highly recommend combining.
All soup bowls are priced at $24 in 2026 but come with a free refill as well as bread and butter. You choose the soup you want to try (they have a few classic options but I love the fish curry) and then can go up and ask for a second bowl, of any soup!
There is also a bread add on for 590 ISK or about $5 as well as a tasting menu of 3 soups for $32.
11. Burgers at Smiðjan Brugghús
- 📍 Smiðjan Brugghús
- 💵 Beer and burger for $35
This is a very popular brewery and burger spot in Vik.
Most people love the burgers and vibe here, but maybe because I don’t drink… and maybe because I prefer bigger portions, I found it underwhelming last few times.
It is most certainly a great burger and fries, but it is not a place I crave when I’m away from Iceland.
11. Ice Cream
- 📍 Cafe Loki
- 💵 $9 for the iconic and unique rye bread ice cream
There are a LOT of great ice cream places in Iceland.
The two I most recommend are:
- Rye bread ice cream at Cafe Loki
- Ísbúðin litla Valdís
There is also Gaeta Gelato that has a few locations in town that is really good.
11. Icelandic Fish
- 📍 Cafe Loki +Messinn
- 💵 $30-$45 for a main dish of mashed or steamed fish
Cafe Loki is recommended a lot and many people love this establishment. I love them for their ice cream and I also love the location and view of the church from the top floor.
With that said, I think the food is not easy for everyone’s taste and the prices are getting higher and higher each year.
Instead, I would recommend Messinn for their “fish pans”.
They do a lot of authentic Icelandic fish stew (plokkfiskur) and the portions are worth the money. Simply amazing!
11. Pastries and Bread
- 📍 Brauð& Co
- 💵 $10-$20 for coffee and a pastry
You can’t come to Iceland and not try the local bread/pastries or anything with carbs.
One of my favorite meals in Iceland is bread and butter!
There are a lot of famous bakeries like Brauð& Co for cinnamon roles but you should also check out Deig and Sandholt.
11. Dessert
- 📍 Loo.koo.mas
- 💵 $15-$20 for a super decadent portion of doughnuts
This is a place that I recommend for so many reasons. They are Greek owned, super friendly, good prices and the actual product is one of my favorite things to eat in Greece and outside of Greece.
The doughnuts are fluffy and fried on the spot, then topped with whatever toppings you pick.
11. Food Halls in Iceland
- 📍 Cafe Loki +Messinn
- 💵 $30-$45 for a main dish of mashed or steamed fish
Food halls are one of the most affordable places you can eat at in Iceland. You will find burgers, fish, tacos as well as pizza and dessert.
The atmosphere also tends to be very relaxed.
Here are two food halls in Reykjavik to check out:
- Pósthús Food Hall & Bar
- Hlemmur Mathöll
And some of the food halls I’ve been to outside the city which are really good:
- Gróðurhúsið – Foothill
- The Old Dairy Food Hall
Ready to book? Top Iceland recommendations
📲 Best eSIM for Iceland: Easiest option is Ubigi — reliable across the country and super easy to set up before landing. Check full review here.
🚌 Airport transfer: Book the Keflavík Airport → Reykjavík bus (Flybus) — cheapest and easiest way into the city after landing. Here are all the options and why I chose this one.
🏨 City hotel option: I’d stay somewhere central in Reykjavík for the first day or 2-3 days if you want to see everything. I love KEX Hostel out of all the hotels I’ve tried. Super interesting design, social space, amazing location.
🎟️ Top Iceland activities:
There are so many good activities and tours to do in Iceland. Here are some of my favorites:
- From Reykjavik: Golden Circle, Kerid, & Secret Lagoon Tour
- Reykjavik: Guided Foodie Walking Tour with 6 Tastings
- Skaftafell: Blue Ice Glacier Hike on Vatnajökull
- Reykjavik: the Original 3-Hour Whale Watching Tour (I have had this tour cancelled on me a few times due to weather, but I will get it next time.)
🚗 Car rental: If you’re doing the Ring Road, compare prices on DiscoverCars — this is what gives you the most flexibility
🗺️ Must-have apps: Download/bookmark road.is and Vedur (Iceland weather) before your trip — you’ll use them daily. Also download all these apps as well.
👚Packing list: Iceland is much more enjoyable with the right gear. Here is what you need to pack and bring.
