See the best cheap restaurants in Reykjavik, capital of Iceland. Get great food for little money downtown by eating at these best value restaurants in Iceland.

1. Bæjarins Beztu hot dogs

Truly the best hot dog in the world. You can even watch a documentary about it in the beginning of this list. A hot dog is 400 ISK, add a coke for 200 ISK.

Best hot dog stand in Reykjavik Iceland

Location: Tryggvagata 1, 101 Reykjavik

2. Noodle station soups

By far the best noodle place in town. They do 3 soups, beef, chicken or vegetarian from 1180 ISK.

It is like a little ritual when you can choose your spices into the bowl. The ceremony is well worth it.

good value noodles: Noodle Station in Reykjavik Iceland

Location: Laugavegur 86, 101 Reykjavik. (The former Skólavörðustígur 21a location is now Krua Thai Express)

3. Habibi Kebabs

A hole in the wall, Syrian falafel and shawarma fast food joint. 

Not only is the owner a really nice man, but he takes great care of his food. The Shish Taouk chicken for just 1350 ISK is highly recommended.

Location: Hafnarstraeti 18, Reykjavik 101.

4. Vegamót Bistro

Vegamót has been the most popular bistro in town for several years. It has a good atmosphere and many young locals meet up at Vegamót before a night out.

fish of the day at best value restauarant and bistro Vegamót in Reykjavik, Iceland

The food there is great and not expensive compared to value. There is always something new on the menu of the day. The price for most dishes is in the 2-3000 ISK range, although you can have steaks that bump the price up to around 4000 ISK.

Location: Vegamótastígur 4. Reykavík 101. 

5. Tommi's Burger Joint

Great burgers and fries with the famous Icelandic cocktail sauce. Cheap and satisfying. 

Burger, fries and soda is 1690 ISK. A little bit extra if you want cheese and/or bacon.

delicious burger from Burger Joint in Reykjavik Iceland

You can also indulge in a reindeer burger or a cheap steak with fries and Bearnaise sause if it takes your fancy (just over 3000 ISK).

Location: Geirsgata 1. Reykjavik, 101.

6. Nonnabiti Subs

One of the oldest fast food joints in Reykjavik is a well known haven for the long nights of drinking. You can get all sorts of delicious subs there, lamb, fish, chicken and chilly. Sandwiches are in the 800 ISK region and subs in the 1300-1500 ISK region.

Always fun to listen to the stories there at 3am in the morning, and some of them are even written on the walls. 

Location: Hafnarstræti 9, Reykjavik 101.

7. Ostabúðin fish and soup

Ostabúðin "The Cheese Shop" used to be just the cheese shop. They served fish at the back of the shop for lunch and not long after, word on the street says it has the best fish in Reykjavik. 

Ostabúðin has now opened a restaurant just next to the cheese shop. Actually the back of the two places are still connected. They still have absolutely the best fish and fish soup you can find in Reykjavik, or probably the whole of Iceland. Dinner is slightly pricy but lunch offers are a steal, all below 2000 ISK.


fish of the day from Ostabúðin, best fish in Reykjavik Iceland

The woman who runs the place is lovely and this place is highly recommended.

Location: Skólavörðustígur 8. Reykjavík 101. 

8. Krua Thai Cuisine 

Not as good as the phenomenal Ban Thai that's beside Hlemmur bus station, but it's cheaper. 

They do a lunch with 3 things on a plate for 1500 ISK that's served with rice. Not too shabby.

Location: Skólavörðustígur 21a, 101 Reykjavik. (the former location at Tryggvagata 14 is now closed)

9. 10-11 Salads

If you're really on a budget, this little 24 hour store has not too bad of a salad counter and some fresh daily baked bread. They are also selling soups and some hot wraps for a few hundred ISK. When times are really tough, head there. But take care, everything else is highly over-priced.

Location: Austurstræti 17. Reykjavík 101.

10. BSÍ Drive Through

At the BSÍ drive through you can get a sheep's face and coke for less than 1000 ISK. If you're really broke but want an adventure with your meal, we recommend you give that a taste. See more traditional food from Iceland here.

Location: Vatnsmýrarvegur 10, 101 Reykjavík