In recent years, many world-class restaurants have opened in the city of Reykjavik, wowing people with their fresh ingredients and creative flavor combinations, making guided food tours increasingly popular.
While dining in Reykjavik can be pricey, there are still plenty of ways to enjoy great food on a budget. Many of the best restaurants and cafés in Reykjavik focus on high-quality ingredients and innovative flavors, but that doesn’t mean affordable options are out of reach.
To make the most of Reykjavik's food scene without overspending, consider Guide to Iceland’s VIP Club, accessible to all Guide to Iceland customers. This program offers discounts and special deals at various restaurants and bars across the country, helping you enjoy more for less.
Many restaurants in Reykjavik serve traditional Icelandic cuisine, showcasing local ingredients and time-honored recipes. However, the city also boasts a diverse food scene with international flavors and exciting fusion spots.
Wondering where to eat in Reykjavik? Check out our hand-picked suggestions for the 13 best affordable places to eat in Reykjavik below.
Key Takeaways
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Affordable Dining: Reykjavik has plenty of budget-friendly restaurants, from hot dog stands and lamb soup cafés to casual burger joints and street food halls.
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Locally Owned: All but one of the featured restaurants are locally owned, offering an authentic Icelandic dining experience.
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Variety: Choices range from traditional lamb and seafood dishes to international options like Thai noodles, Pakistani curries, and Italian pizzas.
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Good Value: Many restaurants offer set lunch menus, generous portions, or unique atmospheres that make them some of the best value restaurants in Reykjavik.
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Convenient Locations: Many cheap eats are found in downtown Reykjavik or near landmarks like Hallgrimskirkja, making them easy to visit while exploring the city.
- Learn more about The VIP Club: Save Big on Exclusive Offers & Discounts
Top 13 Best Cheap Restaurants in Reykjavik
While Reykjavik has a lot of fantastic high-end restaurants serving world-class cuisine, sometimes you just want to keep it casual and try some delicious local food without blowing your budget. These 13 places are some of the best ways to get good food at a reasonable price in the city of Reykjavik.
13. IKEA
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Best for: Swedish meatballs
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Average price level: Mains from around 1,200–1,700 ISK; Bistro hot dog ~345 ISK (about 2–3 USD)
It might seem odd to include a Swedish furniture store in a list of budget-friendly restaurants in Reykjavik. To add insult to injury, it's not even Reykjavik.
It's located in the suburban town of Gardabaer, within the Greater Reykjavik area, and is easy to reach with a rental car or city bus. But it's simply the most bang for your buck if you want to save on food in Reykjavik.
With Ikea’s Icelandic food offerings, you can enjoy simple meals such as Swedish meatballs with potatoes or chicken nuggets with fries. If you prefer veggies, there's a decent selection of salads and a vegan version of Swedish meatballs. The Bistro is also a real bargain for quick snacks, with hot dogs priced well under most places in town.
There's also a café-style dining area, where you can enjoy baked goods and sandwiches with a nice cup of coffee.
IKEA Customer Ratings
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Google rating: 4.5 out of 5 stars
IKEA Restaurant Opening Hours
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Monday – Sunday: 11:00 AM – 7:30 PM
IKEA Address
12. Pitan
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Best for: Pita
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Average price level: Approximately 2,500 ISK (18 USD)
Pitan, as its name indicates, serves top-notch pita bread stuffed with meat, vegetables, and sauces. Opened in 1983, it has been in the Icelandic food scene for over four decades and still remains a classic.
In fact, most Icelanders had never heard of pita before the opening of this restaurant, and it was an immediate hit at the time. Located on Skipholt Street, the interior has an unmistakable 1960s vibe, with large, colorful paintings of all four Beatles straight out of "Yellow Submarine."
There are many options when it comes to choosing your meal, with the classic choice being a simple beef patty pita. Our personal favorite is the crispy chicken pita, with a great combination of garlic sauce, bacon, and heavenly deep-fried chicken tenders.
If you're not in a pita mood, the menu also offers simple hamburgers. If you dine in, you can have unlimited refills at the soda machine, which is always a plus.
Pitan Customer Ratings
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Google rating: 3.9 out of 5 stars
Pitan Opening Hours
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Monday – Sunday: 11:30 AM - 9:00 PM
Pitan Address
- See also the Top 5 Steakhouse Restaurants in Reykjavik
11. Caruso
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Best for: Italian lunch specials
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Average price level: Lunch mains typically 2,100–3,500 ISK (15–25 USD)
If you wander down Austurstraeti, you’ll find one of the top Italian restaurants in Reykjavik, Caruso. It’s inside a historic house from 1801, now filled with the smell of wood-fired pizza and pasta sauces bubbling away. The restaurant has been run by the same family for years, and its cozy rooms lit by candles make it one of the most atmospheric places to eat in Reykjavik.
While dinner here leans toward the romantic, the best value is found at lunchtime. The midday menu includes pizzas, pastas, and lighter dishes at prices that make it easier to enjoy a sit-down meal in the city center without worrying about the bill.
Many visitors praise the seafood dishes, though the simple pizzas are just as satisfying. On weekends, live guitar music adds a little extra charm to the already warm atmosphere.
Caruso Customer Ratings
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Google rating: 4.3 out of 5 stars
Caruso Opening Hours
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Monday – Thursday: 11:30 AM – 10:30 PM
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Friday: 11:30 AM – 11:30 PM
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Saturday: 12:00 PM – 11:30 PM
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Sunday: 5:00 PM – 10:30 PM
Caruso Address
10. Brixton
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Best for: Slider-style burgers
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Average price level: From around 3,000 ISK (21 USD) for slider combos
Who knew that putting burgers on sweet potato buns would be such a revelation? Brixton figured it out, and they've been quietly winning hearts with their slider-style burgers ever since.
These aren't your average sliders either. They come on buns from the renowned Sandholt Bakery, which happens to be one of the best cafés in Reykjavik, famous for their artisanal breads and pastries.
The beauty of slider dining in Brixton is that you can try multiple flavors without committing to one massive burger. The standout has to be the smoked pork belly with apple remoulade, though the brisket slider with jalapeño honey and birria dip is equally impressive.
As one of the best affordable restaurants in Reykjavik, Brixton has mastered the art of good value without sacrificing quality. You can grab a deal with two sliders, fries, and a soda, or the three-slider combo if you're genuinely hungry. Add a local craft beer during happy hour, and it easily becomes one of the best cheap eats in Reykjavik.
Brixton Customer Ratings
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Google rating: 4.6 out of 5 stars
Brixton Opening Hours
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Sunday: 12:00 PM – 9:00 PM
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Monday – Thursday: 11:30 AM – 9:30 PM
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Friday – Saturday: 11:30 AM – 11:30 PM
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Kitchen closes 30 minutes before closing + Kitchen closes at 10:00 PM
Brixton Address
- Read more about Best Happy Hour in Reykjavik
- See also: The Ultimate Guide to Downtown Reykjavik
9. IÐNÓ
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Best for: Coffee and lamb soup
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Average price level: Approximately 2,800 ISK (20 USD)
IÐNÓ sits in a building from 1897, which means you're having coffee somewhere that's older than sliced bread, literally. This place has been a theater, a meeting hall, and probably witnessed more Reykjavik history before settling into cafe life.
The location by the Tjornin Pond is genuinely lovely. You'll find yourself watching the ducks more than you'd expect.
The lamb soup with bread is what keeps people coming back, especially on those crisp days that make you grateful for warm, hearty food. The cakes are good too, and the coffee is strong enough to fuel whatever plans you have for the day.
The prices are refreshingly reasonable compared to most downtown cafés, so you can actually relax and take your time. It’s also a great spot to start a night out, with good food and drinks before heading to some of the best bars in Reykjavik.
IÐNÓ Customer Ratings
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Google rating: 4.4 out of 5 stars
IÐNÓ Opening Hours
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Friday – Wednesday: 11:00 AM – 7:00 PM
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Thursday: 11:00 AM – 6:00 PM
IÐNÓ Address
- See also: Top 29 Best Bars in Reykjavik
- Learn about the Nightlife in Reykjavik
8. Hlöllabátar
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Best for: Late-night subs
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Average price level: Most subs from ~1,800–2,800 ISK (13–20 USD)
Hlöllabátar has been making excellent sub sandwiches in Reykjavik since 1986, and they show no signs of slowing down. Their most popular location is right in the heart of downtown Reykjavik at Ingolfstorg Square, immediately noticeable by their red neon sign in the darkest of nights.
This place tends to get very popular for those out experiencing Reykjavik’s nightlife, with a chaotic queue forming outside the eatery after 2 AM on the weekends.
The menu offers four types of meats and a great selection of classic subs, all drenched in the legendary Hlolli-sauce, the exact ingredients of which have remained a well-kept secret.
The subs are categorized into three price ranges, with some of the most popular being the "Sheriff's Boat" for beef lovers, the "Head Boat" with a great mix of lamb and fried onions, or the hardcore "Hlolli Big" with bacon, beef, and chicken!
Hlollabatar Customer Ratings
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Google rating: 4.5 out of 5 stars
Hlollabatar Opening Hours
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Note: Hours vary by location and season; downtown usually stays open late on weekends.
Hlollabatar Address
7. Hamborgarabullan (Tommi's Burger Joint)
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Best for: Burgers
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Average price level: Approximately 2,500 ISK (18 USD)
Tommi's Burger Joint is a hamburger chain in Iceland serving delicious burgers. In 1981, Tommi opened up his first burger joint and hoped to sell around 250 hamburgers during the opening weekend.
He ended up selling 1,000 on the very first day. Suffice it to say, this place was a hit among Icelanders as one of the best hamburger spots, and its popularity has just grown ever since.
Tommi’s Burger Joint is the go-to spot for simple, delicious burgers and cheap eats in a laid-back setting, decorated with concert posters, vinyl records, and kids’ drawings.
The “Offer of the Century” includes a classic Tommi burger, fries, and soda, while the beef steakburger offers a premium upgrade. With locations in Iceland, the UK, Germany, and Denmark, Tommi’s has built an international reputation, but the location in Geirsgata remains the most iconic.
For other options, 2Guys serves smashburgers in a relaxed bar setting at mid-range prices. Meanwhile, Metro is a homegrown fast-food chain and a version of McDonald's in Iceland, known for quick and budget-friendly meals.
Hamborgarabúllan (Tommi’s Burger Joint) Customer Ratings
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Google rating: 4.7 out of 5 stars
Hamborgarabúllan (Tommi’s Burger Joint) Opening Hours
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Monday – Sunday: 11:00 AM – 9:00 PM
Hamborgarabúllan (Tommi’s Burger Joint) Address
- For other fast-food options, see the 7 Best Pizza Places in Reykjavik
6. Shalimar – Pakistani Cuisine
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Best for: Pakistani flavors and halal dining
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Average price level: Lunch menu dishes typically 2,600–3,000 ISK (19–22 USD)
Shalimar has been quietly winning over Reykjavik since 2001, bringing authentic Pakistani cuisine to the downtown area. The spot feels genuinely welcoming, and the menu covers all the classics like chicken tikka masala, lamb saagwala, biryani, and tandoori naan that arrives at your table still warm.
The real magic happens with their homemade spice blends, which create those deep, complex flavors that remind you why good curry is worth seeking out.
The lunch crowd has figured out the secret with the set menus and combo plates that offer excellent value, with portions generous enough to keep you satisfied well into the afternoon.
As one of the best affordable lunch places in Reykjavik, Shalimar delivers authentic Pakistani flavors, halal options, and the kind of satisfying meal that hits the spot after wandering around the city.
Shalimar – Pakistani Cuisine Customer Ratings
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Google rating: 4.3 out of 5 stars
Shalimar – Pakistani Cuisine Opening Hours
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Monday – Friday: 11:30 AM – 10:00 PM
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Saturday – Sunday: 4:00 PM – 10:00 PM
Shalimar – Pakistani Cuisine Address
5. Grandi Mathöll
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Best for: Street food variety
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Average price level: Approximately 2,500 (18 USD)
Grandi Mathöll has transformed an old fish factory by the harbour into something pretty special since opening in 2017. What used to process fish now serves up some of the best variety you'll find under one roof in Reykjavik, with plenty of stalls offering handmade meals that won't break the bank.
It’s one of the top Reykjavik food halls, and the food covers everything you could want, from proper Icelandic lamb and fresh seafood to Italian pasta, burgers, and tacos. The Indonesian and Indian stalls are particularly worth seeking out for their generous portions and bold flavors that really deliver on taste.
The fish and chips also get serious praise from people who know their way around battered fish, with that perfect crisp, golden coating and fresh catch that makes it worth the trip to the harbour.
As one of the best affordable restaurants in Reykjavik, it's the perfect solution when you want quality food without the hefty price tag.
Grandi Mathöll Customer Ratings
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Google rating: 4.5 out of 5 stars
Grandi Mathöll Opening Hours
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Monday – Sunday: 11:00 AM to 9:00 PM
Grandi Mathöll Address
4. Krua Thai
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Best for: Pad Thai and Thai curries
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Average price level: Approximately 3,400 ISK (24 USD)
Close to Hallgrimskirkja Church, the scent of sizzling noodles and rich curries often draws people into Krua Thai for a taste of authentic Thai flavors. The menu is packed with favorites like pad Thai, green curry, and fried rice, all served in portions big enough to share or keep you full for the rest of the day.
The tom yum soup is a standout, especially on a cold Reykjavik evening, offering just the right mix of spice and comfort.
For budget-conscious travelers, the lunchtime specials are a highlight, giving you hearty meals at a price that fits well within the list of affordable restaurants in Reykjavik. Quick service and takeaway options make it a convenient choice when you’re short on time but still want something flavorful.
Krua Thai Customer Ratings
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Google rating: 4.5 out of 5 stars
Krua Thai Opening Hours
Skolavordustigur Branch:
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Monday – Friday: 11:30 AM – 9:30 PM
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Saturday: 12:00 PM – 9:30 PM
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Sunday: 5:00 PM – 9:30 PM
Krua Thai Address
3. Arabian Taste
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Best for: Shawarma and kebabs
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Average price level: Wraps from ~2,000 ISK; plates ~2,700–2,900 ISK
Arabian Taste opened in 2021 and quickly won a strong reputation for serving some of the city’s best Middle Eastern food at affordable prices.
Found on Laugavegur, this family-run spot specializes in Syrian classics like chicken and lamb shawarma, kebabs, and Arabic plates, all prepared with rich spices and fresh ingredients that make each dish memorable.
The reviews tell the story best. Diners describe Arabian Taste as one of their favorite meals in Reykjavik, praising the warm service, generous portions, and consistent quality.
Popular picks include the Chicken Doner, Arabian Mix, and shawarma plates with rice and salad, while others rave about the crispy fries and fresh hummus. Many highlight the good value for money, with some calling it the best Arabic food they’ve ever tried.
There are also Mandi and Lamb Street Food, two well-loved, affordable restaurants in Reykjavik known for their kebabs. Mandi has become a late-night favorite downtown with its budget-friendly shawarma, falafel, and hummus plates. Meanwhile, Lamb Street Food offers an Icelandic take by combining local lamb with flatbreads, skyr, and Middle Eastern spices.
Arabian Taste Customer Ratings
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Google rating: 4.7 out of 5 stars
Arabian Taste Opening Hours
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Monday to Thursday: 10:00 AM – 11:00 PM
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Friday: 10:00 AM – 2:00 AM
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Saturday: 11:00 AM – 2:00 AM
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Sunday: 11:00 AM – 11:00 PM
Arabian Taste Address
2. Icelandic Street Food
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Best for: Bottomless lamb and tomato soup refills
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Average price level: About 3,000 ISK (21 USD) for a refillable bread-bowl soup
A steaming bowl of lamb soup is hard to beat on a chilly Reykjavik day, and this cozy spot delivers exactly that.
At Icelandic Street Food, the lineup is simple and comforting. There are options like the Fisherman's Favorite fish stew, the spicy tomato soup, and most importantly, the meat and shellfish soup, which have unlimited refills! All are served with fresh bread.
The complimentary waffles with jam that come with every meal make it feel extra generous and are a nice touch that people remember.
Icelandic Street Food Customer Ratings
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Google rating: 4.7 out of 5 stars
Icelandic Street Food Opening Hours
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Monday – Sunday: 11:00 AM – 10:00 PM
Icelandic Street Food Address
1. Baejarins Beztu Pylsur
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Best for: Hot dogs
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Average price level: Approximately 820 ISK (about 6 USD) per hot dog
Baejarins Beztu Pylsur is the go-to spot for cheap eats and the best hot dogs in Iceland. This legendary Reykjavik stand has been serving up iconic Icelandic hot dogs since 1937.
Made with a unique blend of lamb, pork, and beef, these hot dogs have become a must-try for visitors and locals alike. What makes them truly special is the toppings.
Order "one with everything" ("eina með öllu") and you'll get a delicious mix of sweet brown mustard, remoulade, ketchup, raw onions, and crispy fried onions. Join the ranks of Bill Clinton, Kim Kardashian, and Gordon Ramsay in tasting this Icelandic favorite. You can now also order for delivery within Reykjavik via popular apps if you prefer to skip the line.
For an even more affordable option, you’ll find a very low-priced hot dog at the IKEA Bistro near Reykjavik, with a vegan option too.
Another spot to check out is Víkinga Pylsur by Hallgrimskirkja, known for creative takes like pulled meats and a solid vegan choice. For a different kind of quick bite, Hagavagninn by Vesturbaejarlaug Pool serves simple burgers, a bean patty option, and keeps a cozy retro vibe that locals love.
Bæjarins Beztu Pylsur Customer Ratings
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Google rating: 4.4 out of 5 stars
Bæjarins Beztu Pylsur Opening Hours
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Sunday – Wednesday: 9:00 AM – 1:00 AM
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Thursday: 9:00 AM – 2:00 AM
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Friday – Saturday: 9:00 AM – 6:00 AM
Bæjarins Beztu Pylsur Address
FAQs About Affordable Restaurants in Reykjavik
Here are some of the most common questions about affordable restaurants in Reykjavik.
What are the best cheap restaurants in Reykjavik?
Many of the best affordable restaurants in Reykjavik are right in the city center, including Icelandic Street Food for unlimited soup refills, Tommi’s Burger Joint for classic burgers, and Bæjarins Beztu Pylsur for the famous Icelandic hot dog. These cheap restaurants in Reykjavik are centrally located and popular with both travelers and locals looking for budget-friendly meals.
What is the average meal price in Reykjavik?
A casual meal in Reykjavik typically costs between 18 USD and 32 USD, while a three-course dinner at a mid-range restaurant can cost 43 USD to 71 USD per person.
Is it easy to find cheap food in Reykjavik?
Yes. Despite Iceland’s reputation for high prices, you’ll find plenty of cheap food in Reykjavik, from hot dog stands to casual burger joints and food halls with international dishes.
Is it cheap to eat out in Iceland?
Eating out in Iceland can be expensive, but you can also find budget-friendly options like hot dog stands, street food, and burger joints to save money.
If you're a Guide to Iceland customer, don't forget to use your exclusive VIP Club discounts at restaurants, cafes, bars, and more.
What is the cheapest food in Reykjavik?
The cheapest food in Reykjavik is often the famous hot dog at Bæjarins Beztu Pylsur (around 800–850 ISK). You can also grab one of the lowest-priced hot dogs at IKEA’s food court, making it a popular budget choice. Other affordable options include pastries from local bakeries, shawarma from Arabian Taste, and Thai meals at Krua Thai.
What are the best places to eat in Reykjavik for lunch?
For lunch in Reykjavik, affordable options include Caruso for Italian specials, Grandi Mathöll for street food, and Pitan for stuffed pita bread.
Where to go to dinner in Reykjavik?
For a casual and affordable dinner, try Icelandic Street Food for hearty local dishes or 2Guys for smash burgers. If you want something more upscale, Caruso offers a cozy Italian setting, while Iðnó combines culture with dining in a historic building.
What are the best casual restaurants in Reykjavik?
Some of the best casual restaurants in Reykjavik are 2Guys for smash burgers, Brixton for sliders, and Grandi Mathöll for international food stalls. These casual restaurants in Reykjavik are great for groups of friends or relaxed dining.
Are there affordable vegetarian and vegan restaurants in Reykjavik?
Yes. Grandi Mathöll has stalls with vegan and vegetarian dishes, IKEA offers vegan Swedish meatballs, and Víkinga Pylsur serves a plant-based hot dog near Hallgrimskirkja. See more options in our helpful vegan and vegetarian guide to Reykjavik.
What food is Reykjavik known for?
Reykjavik is famous for its Icelandic lamb, fresh seafood, and unique traditional dishes like fermented shark and dried fish.
Where To Find the Best Cheap Eats in Reykjavik
Like many capital cities, choosing where to eat in Reykjavik on a budget can be overwhelming. While Iceland has a reputation for high prices, there are still fantastic budget-friendly dining options to enjoy. You’ll find all the locations on this list marked on the map above.
Reykjavik’s food scene is diverse, offering everything from classic Icelandic dishes to international flavors. Whether you're grabbing a quick bite between self-drive tours or sitting down for a cozy meal, these affordable restaurants ensure you can enjoy great food without overspending.
You can also use the map when picking from the wide selection of hotels and places to stay in Reykjavik. Choose one near these affordable restaurants and you’ll always have good, budget-friendly food just a short walk away. It’s especially convenient after day trips from Reykjavik, when you get back tired and want something easy and affordable without going far.
Have you tried any of these affordable restaurants in Reykjavik? Do you have a favorite budget-friendly spot we missed? Share your experiences and recommendations in the comments below!
