Eating in Iceland
From hot dogs at Bæjarins Beztu to world-class New Nordic dining — Iceland's food scene surprises everyone
Must-Try Foods
Skyr
Iceland's thick, protein-packed dairy staple — technically a fresh cheese, traditionally eaten as yogurt. Available everywhere, in every flavour. A daily ritual for most Icelanders.
Lamb (Lambakjöt)
Icelandic lamb roams free all summer on highland grasses and wild herbs. The flavour is extraordinary. Try it as kjötsúpa — the classic lamb and vegetable soup that warms you on any cold day.
Arctic Char (Bleikja)
A freshwater fish native to Iceland's glacial rivers, lighter and more delicate than salmon. A staple of Icelandic diets for centuries. Served smoked, pan-fried, or cured.
Hot Dog (Pylsur)
The Reykjavík hot dog from Bæjarins Beztu is a national institution. Lamb and pork blended, topped with crispy fried onions, raw onion, ketchup, mustard, and rémoulade. Eaten by every president who visits.
Kleinur
Twisted Icelandic doughnuts — slightly cardamom-spiced and fried golden. Found in every bakery from Reykjavík to Akureyri. The perfect companion to a hot Icelandic coffee.
Hákarl
Fermented Greenlandic shark, cured for months until ammonia-rich. A genuine bravery test — not recommended for most visitors, but a rite of passage for the adventurous. Chase with Brennivín schnapps.
Budget Eating Guide
Supermarket meal
Bónus / Krónan
Pick up skyr, bread, smoked salmon, and ready meals. Bónus has the lowest prices in Iceland — easy to recognise by the pink pig logo.
Bakery lunch
Soup + pastry
Most Icelandic bakeries (bakarí) serve a daily soup — usually lamb, fish, or tomato — with bread for around €10. Filling, hot, and genuinely good.
Sit-down restaurant
Main course + drink
A sit-down meal in Reykjavík will comfortably run €35–45 for a main and a beer. Outside the capital, prices are slightly lower but selection narrows.
Bónus is your best friend
Stock up at Bónus supermarket before leaving Reykjavík for the Ring Road. The pink pig logo marks the cheapest grocery chain in Iceland — a well-stocked cooler will save you hundreds of euros on a week-long trip.
Reykjavík Food Scene
Iceland's capital punches well above its weight for a city of 130,000. The food scene has exploded in the last decade — from street food to Michelin-quality New Nordic cooking.
Bæjarins Beztu
The legendary hot dog stand on the harbour. Queue at lunch.
Hlemmur Mathöll
Reykjavík's food hall — noodles, tacos, hummus, and craft beer under one roof.
Grillmarket (Grillmarkaðurinn)
New Nordic fine dining. Volcanic stone grill, local ingredients, exceptional tasting menu.
Sægreifinn (The Sea Baron)
Tiny harbour shack famous for its lobster soup (humarsúpa). The best €8 you'll spend in Iceland.
Laugavegur Street
The main commercial street is lined with cafés, bakeries, and restaurants. Walk its full length before choosing.
Never buy bottled water in Iceland
Iceland has some of the cleanest tap water in the world — straight from glacial aquifers, cold and pure. Buying bottled water is an unnecessary expense and an environmental waste. Refill your bottle at any tap, public bathroom, or guesthouse.
Alcohol in Iceland
Vínbúðin — the state liquor store
Iceland has a state monopoly on alcohol above 2.25% ABV. Vínbúðin stores are the only legal place to buy wine, spirits, and strong beer. Opening hours are limited — typically 11:00–18:00 on weekdays and shorter on weekends. There are no Vínbúðin stores in rural Iceland.
Pro tip: buy duty-free at Keflavík Airport on arrival
The Duty Free store at Keflavík International Airport (on the arrivals level) sells alcohol at roughly half the price of Vínbúðin. You can buy up to the legal import allowance — typically 1 litre of spirits and 6 litres of wine or beer. Every experienced Iceland traveller does this.