Reykjavik Food and Drink Guide: Where and What to Eat in 2026
What should I eat in Reykjavik?
The Baejarins Beztu Beztu pylsur hot dog (ISK 820) is the honest starting point. Beyond that, lamb soup, skyr, and the growing Nordic-influenced restaurant scene. Budget ISK 3,000-5,000 per main course at sit-down restaurants; happy hours 16:00-19:00 cut drink prices significantly.
Eating in Reykjavik: honest context before you start
Reykjavik is not cheap to eat in. The city sits on a remote island with high labour costs, significant import costs for most ingredients, and a tourist economy that has learned to price accordingly. A main course at a mid-range restaurant will typically cost ISK 3,000-5,000 (around EUR 20-34 at 2026 rates). A pint of beer in a pub runs ISK 1,200-1,800.
That said, there are real ways to eat well without destroying your budget, and the food scene has genuinely improved over the past decade. Icelandic lamb is excellent. Arctic char and langoustine are among the best seafood you will taste anywhere. The craft beer movement has produced some distinctive local producers. And the hot dog is as good as advertised.
Tap water is excellent everywhere in Reykjavik. Do not buy bottled water. It is pure groundwater, completely safe, and sold in bottles only to tourists who do not know better.
Baejarins Beztu: start here
The small red kiosk at Tryggvagata 1, near the old harbour, has been selling hot dogs since 1937. The hot dogs are made from a blend of lamb, pork, and beef, and the combination of mustard, remoulade, ketchup, and crispy fried onion is genuine Icelandic street food.
Cost: ISK 820 (2026). Order by saying “ein med ollu” — one with everything. The queue is generally short outside of the peak tourist hours of midday and evening. Bill Clinton ordered his without onion in 2004; do not do this.
This is not a tourist gimmick. Locals eat here. It is genuinely cheap, the quality is consistent, and it is one of the few places in Reykjavik where the price has not inflated to extract tourist money.
Happy hours: the most important local knowledge
Reykjavik bar culture operates on a happy-hour system that runs typically from around 16:00 to 19:00 or 20:00. During this window, beer prices can drop from ISK 1,500 to ISK 850-950 — a meaningful difference. If you plan to drink, organize your evening around these hours.
Reliable happy-hour options on and around Laugavegur:
- Kaldi Bar: focused on Kaldi craft beer, clean Nordic interior, generally good atmosphere without the tourist noise
- Mikkeller and Friends: international craft beer bar, extensive tap list, not as cheap as local options but good quality
- B5 Bar (Bankastraeti 5): long-running local bar, cheap happy-hour prices, less polished but honest
- The Drunk Rabbit: Irish-style pub, popular with backpackers, usually has competitive happy-hour pricing
The nightlife on Laugavegur does not start until 23:00 or midnight on weekends. If you are not a late-night person, happy hour is the practical way to experience the bar scene at sensible hours.
Hlemmur Matholl: the food hall
Hlemmur Matholl, inside the old bus terminal at Hlemmur square, is the best single destination for a varied, casual meal. Around a dozen small vendors operate inside, covering ramen, tacos, seafood, dumplings, ice cream, and local bakery goods.
Quality is variable but generally good. Prices are lower than most sit-down restaurants. It is busy at lunch and early evening. The atmosphere is genuinely lively without being performative about it. It is a twenty-minute walk from the city centre or a short bus ride.
Join a guided Reykjavik food walking tour with six tastings if you want local context and guided introductions to the food scene — these tours typically cover the hot dog stand, a brewery, skyr tasting, and at least two or three restaurants.
Icelandic food worth ordering
Kjotsuupa (lamb soup): thick, vegetable-heavy broth with tender lamb. Available in most traditional restaurants and many cafes. Filling and honest. Usually ISK 2,000-2,800 for a large portion.
Skyr: fermented dairy product that sits somewhere between thick yogurt and fresh cheese. Higher in protein than yogurt. The plain version from a supermarket (Bonus or Kronan) is the best value — sold in 500g tubs for around ISK 350-500. Restaurant skyr with berry compote is fine but significantly more expensive.
Smoked lamb (hangikjot): traditional cured smoked lamb, associated with Christmas but available year-round at traditional restaurants. The flavor is distinctive and quite smoky. Worth trying once.
Arctic char and langoustine: when restaurants advertise fresh-caught fish, the char and langoustine are the reliable choices. Arctic char is a freshwater fish with salmon-like flavor. Langoustine from Icelandic cold waters are among the best in the world. Expect to pay ISK 4,500-7,000 for a main course featuring these.
What to avoid: the tourist menus at restaurants near Hallgrimskirkja often price aggressively for mediocre food. The puffin and minke whale dishes served at some restaurants are controversial — puffin populations have declined sharply and the whale-watching industry in Reykjavik actively asks visitors not to eat whale. Both can be skipped without missing anything culinarily significant.
Supermarkets and self-catering
Reykjavik has several large supermarkets that can cut food costs significantly if you are willing to self-cater some meals.
Bonus (yellow and pig logo): the cheapest option. Skyr, bread, smoked lamb slices, fresh fruit, dairy, and frozen items are all well-priced here. There is a central location on Laugavegur and several others across the city.
Kronan: similar price range to Bonus, slightly better produce selection.
Melabud: neighborhood supermarket in the residential areas west of the city centre. More expensive than Bonus but convenient.
A practical Reykjavik food budget:
- Self-catered breakfast from Bonus: ISK 400-600 per person
- Baejarins Beztu hot dog lunch: ISK 820
- Happy-hour drinks before dinner: ISK 1,700-2,600 for two beers at happy-hour prices
- Sit-down dinner main course: ISK 3,000-5,000
For budget context, see the full Iceland cost and budget guide.
Craft beer and the Reykjavik brewing scene
Iceland lifted its beer ban only in 1989. The craft beer scene is young but has developed quickly. Worth knowing:
Kaldi: clean lager and pilsner style, brewed in Akureyri and widely available. The most consistent everyday option.
Olvisholt Brugghus: produces Lava (smoked imperial stout), Skjalfti (pale ale), and seasonal releases. The Lava stout is particularly distinctive.
Microbar on Austurstraeti is a small bar with an extensive tap selection covering Icelandic and international craft beers. More expensive than happy-hour bars but the selection is serious.
The main breweries do not offer public taprooms in Reykjavik but their products are widely distributed in bars and supermarkets (you can buy craft cans from Bonus to drink in your accommodation).
Book an evening Icelandic food and drink tour for a guided bar crawl and tasting experience with a local guide — this is particularly useful if you want introduction to the nightlife scene without wandering randomly.
Coffee culture
Reykjavik takes coffee seriously. Kaffitar and Te and Kaffi are the main local chains with multiple city-centre locations. Reykjavik Roasters on Brautarholt is a specialty roaster worth seeking out. Stofan Cafe is a relaxed, cozy option popular with locals. Prices are roughly ISK 600-900 for a flat white or cappuccino, comparable to London or Copenhagen.
Where to eat near the main sights
If you are walking between Hallgrimskirkja and the waterfront — the main tourist circuit — here is honest guidance:
- Avoid the restaurants immediately adjacent to Hallgrimskirkja: tourist pricing, mediocre quality
- The Grandi harbour area (10-minute walk west of the Sun Voyager) has Flatey Pizza, Grandi Matholl food hall, and Bergsson Mathus — all better value than the tourist centre
- Laugavegur itself has a mix: some good places (Snaps, Bergsson Mathus, Kaffitar) and some overpriced tourist traps. Walk a block or two off the main street for better value.
For more on city sightseeing, see Reykjavik free things to do and Reykjavik museums and attractions.
If you are arriving from Keflavik Airport, see the Keflavik to Reykjavik transfer guide for timing your arrival and first meal options.
Frequently asked questions about eating and drinking in Reykjavik
How expensive is food in Reykjavik?
Sit-down restaurant mains typically run ISK 3,000-5,000 (roughly EUR 20-34). A pint of craft beer costs ISK 1,200-1,800 at most bars. The hot dog at Baejarins Beztu is ISK 820 and genuinely iconic. Happy hours (usually 16:00-19:00) can halve drink prices. Buying skyr, bread, and smoked lamb from supermarkets (Bonus, Kronan) for self-catering cuts costs significantly.
Is tap water in Reykjavik safe to drink?
Yes. Reykjavik tap water is among the purest in the world, sourced from clean groundwater. Do not buy bottled water — it is unnecessary, expensive, and wasteful. Every restaurant, cafe, and hotel tap is perfectly safe.
What are the best happy hours in Reykjavik?
Most bars along Laugavegur and Austurstraeti run happy hours from roughly 16:00 to 19:00. Kaldi Bar, Mikkeller and Friends, and B5 are reliable options. Some places run happy hour from opening until 20:00 on weekdays. Beer can drop from ISK 1,500 to ISK 800-900 during these windows.
Where is Baejarins Beztu and what makes it worth visiting?
Baejarins Beztu Pylsur is a small red kiosk at Tryggvagata 1, near the old harbour. It has been there since 1937. The lamb-based hot dog is genuinely good, costs ISK 820, and comes with brown mustard, ketchup, remoulade, and raw or fried onion. Order “ein med ollu” (one with everything). Queue is usually short.
What Icelandic foods should I actually try?
Kjotsuupa (lamb soup) is filling and honest. Skyr is the fermented dairy staple — available everywhere, the plain version is best. Smoked lamb (hangikjot) appears on most menus. Fresh Arctic char and langoustine are genuinely excellent. Avoid hakarl (fermented shark) unless you are curious — it tastes of ammonia.
Are there good vegetarian or vegan options in Reykjavik?
Yes, more than you might expect. Gardurin is a dedicated vegetarian/vegan restaurant. Hlemmur Matholl has vendors with plant-based options. Most burger bars and sandwich shops have veggie versions. Supermarkets cover the basics easily.
What are the best areas to eat in Reykjavik?
The Laugavegur and Skolvorstigur area has the highest concentration. The Grandi harbour area has newer, more casual options. Hlemmur food hall is excellent for variety at mid-range prices. The tourist restaurants immediately near Hallgrimskirkja are the ones to avoid.
Frequently asked questions about Reykjavik Food and Drink Guide
How expensive is food in Reykjavik?
Is tap water in Reykjavik safe to drink?
What are the best happy hours in Reykjavik?
Where is Baejarins Beztu and what makes it worth visiting?
What Icelandic foods should I actually try?
Are there good vegetarian or vegan options in Reykjavik?
What are the best areas to eat in Reykjavik?
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