In recent years, so many world-class restaurants have opened in the city of Reykjavik, wowing people with their fresh ingredients and creative flavor combinations.
While dining in Reykjavik can be pricey, there are still plenty of ways to enjoy great food on a budget. Many restaurants 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.
For a deeper dive into Iceland’s culinary culture, consider joining one of these food tours in Reykjavik, where you can sample some of the best local dishes.
Wondering where to eat in Reykjavik? Check out our hand-picked suggestions for the 12 best affordable places to eat in Reykjavik below.
Key Takeaways
-
Affordable Dining: Reykjavik has plenty of affordable restaurant options that won’t break the bank, from Icelandic classics to international flavors.
-
Locally Owned: All but one of the featured restaurants are locally owned, offering an authentic Icelandic dining experience.
-
Diverse Options: From hot dogs and lamb soup to smash burgers and shawarma, there’s something for every taste.
-
Unique Experiences: Many restaurants offer more than just food, with themed atmospheres, retro decor, and lively vibes.
- Learn more about The VIP Club: Save Big on Exclusive Offers & Discounts
- Check out our list of Best Restaurants in Reykjavik
Best Places To Eat 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 12 places are some of the best ways to get good food at a reasonable price in the city of Reykjavik.
To easily get around the city, you can rent a car in Reykjavik to take you from place to place. There is a wealth of accommodations in the capital, which you can explore on the largest marketplace for hotels in Reykjavik. The capital city also makes for a good base from which to explore the country, so make sure you book day trips from Reykjavik and be back in the city before dinnertime!
12. IKEA
-
Best for: Swedish meatballs
-
Average price level: Approximately 1,500 ISK (11 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. 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, hovering just around 7 USD.
If you prefer veggies, there's a decent selection of salads and even a vegan version of Swedish meatballs (minus the meat). There's also a cafe-style dining area, where you can enjoy baked goods and sandwiches with a nice cup of coffee while enjoying a lovely view of ... the warehouse in Ikea.
11. Lamb Street Food
-
Best for: Lambaroni
-
Average price level: Approximately 2,800 ISK (20 USD)
Anyone who has traveled around Iceland during the summer will be quite familiar with the sturdy and proud Icelandic sheep that roam freely around the countryside before being rounded up in the fall.
Icelandic lamb, known for its rich flavor and high quality, holds a Protected Designation of Origin (PDO) status, highlighting its unique heritage and exceptional taste.
This lamb is the star of Lamb Street Food, where Icelandic staples—lamb, skyr, and flatbread—are infused with Middle Eastern and Moroccan flavors, resulting in a delicious meal.
Our favorite is the Lambaroni, a freshly baked flatbread with cheese, dates, pepperoni, lamb kebab, and other flavors blended together. For non-meat eaters, there is also a nice selection of falafel blends in flatbread wraps and salads.
The interior of the place is inviting and well-thought-out, with art on the walls displaying the many natural colors of Icelandic sheep.
Book a table at Lamb Street Food today!
-
See also the Top 5 Steakhouse Restaurants in Reykjavik
10. Hagavagninn
-
Best for: Simple burger selections
-
Average price level: Approximately 1,400 ISK (10 USD)
If you want good, honest burgers with no frills, Hagavagninn is the place to go. Conveniently located by the Vesturbaejarlaug swimming pool, this burger place carries a certain neighborhood pride in the Vesturbaer district, named after the old public bus en route there during the ’60s and ’70s.
They keep it remarkably simple by having only three types of burgers on the menu, with an option to make it a double or replace the beef patty with a bean patty. If you try just one, you are guaranteed to have cravings to try all three.
The design of this burger joint matches the simplicity of its menu. Glass surrounds the dining area with concrete pavers underneath and heating lamps overhead, making you feel like you're eating outside.
The music played at Hagavagninn is refreshingly retro, often blasting out classic rockabilly tunes or outlaw country, despite the staff being born many decades after the music's heyday.
9. Mandi
-
Best for: Shawarma
-
Average price level: Approximately 2,500 ISK (18 USD)
Mandi is a classic stop for late-night grub after a night of partying in downtown Reykjavik. Since opening in 2011, it has consistently delivered on its promise to provide authentic Syrian food for a reasonable price.
The restaurant serves a wide range of shawarma, falafel, and hummus dishes that are affordable, filling, and delicious. There's some casual seating within Mandi, but you can also order meals to go.
Despite being a small fast-food venue, the family-run business has a reputation for warmth and hospitality. The popularity of the original Mandi at Ingolfstorg square has spawned two other locations, as well as sauces, hummus, spices, and even frozen pizzas being sold under the Mandi brand in supermarkets around the country, recognizable by their signature fez hat logo.
-
See also Nightlife in Reykjavik
8. Just Wingin' It
-
Best for: Wings
-
Average price level: Approximately 3,000 ISK (21 USD)
Starting as a humble food truck, Just Wingin' It has quickly become a local favorite, expanding to two locations in the capital region. This spot is all about one thing: making the best chicken wings in Iceland.
It features a sporty, American-style atmosphere filled with sports memorabilia and license plates from all 50 states. It’s no surprise that the restaurant was founded by an American basketball player who played in Iceland for years.
His mission to bring authentic Buffalo-style wings to the north has been a huge success. The menu features a dozen sauces, with a focus on flavor over heat — though spice lovers can consult the heat scale for an extra kick.
A standout choice is the honey-based lemon pepper Cajun sauce, which even won a newcomer prize at the National Buffalo Wing Festival in 2023.
7. Hlollabatar
-
Best for: Late-night subs
-
Average price level: Approximately 1,600 ISK (11 USD)
Hlollabatar 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 after a night on the town, 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!
-
Read more about Best Happy Hour in Reykjavik
6. Pitan
-
Best for: Pita
-
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 Iceland 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.
5. 2Guys
-
Best for: Smash burgers
-
Average price level: Approximately 3,000 ISK (21 USD)
2Guys, located by Hlemmur Square in Reykjavik, is the perfect spot for great smash burgers, drinks, and a dose of ’90s nostalgia. Owned by Robbi Kronik, Iceland’s first hip-hop radio host, the restaurant’s love for the genre shines through in its menu and decor.
The restaurant's burgers and walls pay homage to ’90s rap legends, like Wu-Tang Clan and Notorious B.I.G. The food lives up to the vibe — soft buns, double smashed patties dripping with cheese, and creative toppings like the “2Pac,” loaded with triple cheese, jalapeños, and crushed Doritos.
Beyond the burgers, 2Guys offers a fun, laid-back atmosphere where you’ll want to stick around. Grab a beer or cocktail from the full bar, play a game of darts with automated scoring, or go fully retro with the original Mortal Kombat arcade machine.
Whether you're here for hip-hop, games, drinks, or a seriously good burger, 2Guys is a must-visit.
4. 101 Reykjavik Street Food
-
Best for: Traditional Icelandic dishes
-
Average price level: Approximately 2,500 ISK (18 USD)
Iceland may not have a strong street food culture, but 101 Reykjavik Street Food serves up some of the best traditional comfort food in the city. Located near the vibrant, rainbow-painted Skolavordustigur Street, it’s the perfect place to warm up on a chilly day with a hearty, homemade meal.
Their Icelandic lamb meat soup is a must-try, packed with tender lamb, potatoes, and carrots. The creamy "plokkfiskur" fish stew and rich langoustine soup are also local favorites, while the classic chicken noodle soup offers a familiar alternative.
To finish, treat yourself to Icelandic skyr with blueberries — delicious and refreshing!
3. Hamborgarabullan (Tommi's Burger Joint)
-
Best for: Burgers
-
Average price level: Approximately 2,300 ISK (16 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.
2. Litli Barinn
-
Best for: Vegetarian and vegan options
-
Average price level: Approximately 3,400 ISK (24 USD)
Litli Barinn, located in the Local 101 hotel, is one of the best restaurants in Reykjavik for high-quality, affordable dining.
Opened in 2024, it offers a mix of small plates and hearty mains, including vegetarian and vegan options. Known for its top-tier margaritas, curated wine selection, and great happy hour (3-6 PM), it’s a must-visit for food lovers.
True to its Icelandic roots, Litli Barinn emphasizes local ingredients and plays only Icelandic music, creating a cozy and authentic atmosphere — perfect for a relaxed evening with friends or a romantic date night. Walk-ins are welcome, but it’s best to book a table at Litli Barinn ahead of time.
For a closer look at this charming spot, check out the video above from our fun night out at Litli Barinn! You can also read our review of Litli Barinn to learn more.
1. Baejarins Beztu Pylsur
-
Best for: Hot dogs
-
Average price level: Approximately 740 ISK (5 USD)
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.
-
See also 7 Best Pizza Places in Reykjavik for other fast-food options
FAQs About Affordable Restaurants in Reykjavik
Here are some of the most common questions about affordable restaurants in Reykjavik.
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 43-71 USD per person.
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.
Where To Go to Dinner in Reykjavik?
For a casual and affordable dinner, try 101 Reykjavik Street Food for Icelandic classics or 2Guys for smash burgers, while Litli Barinn offers a higher-end Nordic dining experience.
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 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 below.
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.
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!
