What is worth trying while in Iceland? In which restaurants can you try traditional Icelandic dishes? Where do Icelanders go for dinner? How much can a dinner in Iceland cost? You will read about all this below.
Traditional Icelandic cuisine: what to try
Iceland offers quite a lot of dishes that cannot be tasted elsewhere in the world. Traditional Icelandic folk cuisine is a simple fisherman’s cuisine, based primarily on fish, mostly dried or fermented in the simplest way available here, that is, by burying it in the ground. Seal and whale meat was also once popular, but today – especially the former – it is rather rare.
Many of these local specialties – often in ‘modernized’ versions – are still available in various restaurants, bars and cafes. Many of them have a really specific flavor and intense aroma. If you’re traveling in a larger group, it’s worth ordering one or two portions to share. Especially since some of these dishes are small snacks with a very intense flavor (hats off to anyone who eats a whole portion of fermented shark!), so they don’t have to cost much, and the experience can be unforgettable.
The queen of Icelandic menus, on the other hand, is lamb. There are more sheep than people in Iceland today, so it’s no surprise that the staple of the Icelanders’ meat diet is lamb. Also, in the best restaurants, it is lamb that is usually one of the best, most delicious dishes. However, lamb is certainly not very ‘exotic’, and the culinary adventure awaits elsewhere – in the ‘bizarre’ traditional cuisine that is slowly fading into oblivion.
The most popular traditional Icelandic dishes
If you want to try dishes of traditional Icelandic folk cuisine, look for the following items on the menu:
- Þorramatur (or Thorramatur)
A plate of traditional snacks. Usually a selection of small portions of various dishes, served with rye bread. The price depends on the composition and size, but it’s usually a very good option, especially as a first try. - Svið
Svid – cooked sheep’s head
Cooked sheep’s head (without brains and horns, in modern times usually also without eyes…). The meat itself is tender and very tasty, but the overall impression of picking meat off an animal’s skull is strange, to say the least.
The best place for this dish is the Islenski Barinn restaurant in downtown Reykjavik, at Ingólfsstræti 1a. A portion of head with potatoes there costs 3,750 ISK (about $27; 2023). Many other Icelandic specialties (and, shall we say, “ordinary” dishes) are also available at the same location.
Svid can also often be bought in supermarkets (e.g., Krónan): about 1,000 ISK, or about $7 per serving.
- Hákarl
Hakarl at Cafe Loki
Fermented shark – another dish for the brave. Usually, hakarl is served as several small cubes, often accompanied by a stronger drink.
If you really, really like heavily fermented cheeses, then hakarl might taste good to you; if not – well, eat it if only to have another incredible story to tell when you return…
Six small cubes cost 1,950 ISK ($14), and a 50 ml shot (about 1.7 oz) of Brennivin is an additional 1,250 ISK ($9). We recommend combining the two, but only for the sake of adventure – in our opinion, both taste terrible…
- Harðfiskur
traditionally dried cod
Dried fish (usually cod), often served with bread and/or butter. It’s a traditional dish, but very tasty (wow!). The only potential surprise is that the meat is really tough. If you’re familiar with the taste of beef jerky popular in the States, South Africa or Australia, hardfiskur is that kind of jerky, only made from cod. A serving at Cafe Loki in Reykjavik is 490 ISK, or about $3.50.
- Gellur
Tongues of cod, usually breaded and deep-fried. Available as an appetizer in some restaurants. - Slátur
A dish that comes in two varieties: blódmör (a type of black pudding) and lifrapylsa (a kind of liverwurst). Both are easiest to buy in markets (about 1,000–1,500 ISK, or $7–11 per kg) or as a sandwich side dish in appetizers. Black pudding lovers are sure to appreciate the new taste… - Rúgbrauð
This is simply rye bread, except that once upon a time, traditionally, it was baked directly in the naturally hot ground which gave it a specific taste, smell and texture. A presentation of this traditional baking is worth seeing, for example, at Laugarvatn Fontana (2,500 ISK – about $18 per person aged 12 and over).In stores (e.g., Krónan), rye bread costs about 400–500 ISK ($3) per loaf, but it is baked industrially. In restaurants, such bread is a popular staple of many appetizers.
- Brennivín
Potato schnapps flavored with caraway, a bit like anise liquor in taste. A single serving in a bar costs about 1,000 ISK ($7); a whole bottle (0.5 l) at Vínbúðin, the state liquor store – about 8,000 ISK (about $60); the cheapest version in a duty-free store at departures: 1,299 ISK ($9) for 0.5 l (plastic bottle, in the store in the departures hall; on ‘arrivals’ it is more expensive).
Top places to try traditional Icelandic dishes
It’s hard to find a restaurant serving all the dishes indicated above, but the largest selection is probably offered by the Islenski Barinn (literally: the Icelandic Bar) in downtown Reykjavik – on Ingolfsstraeti Street, between Hverfisgata and Laugavegur.
This is a relatively inexpensive place (for Iceland!!!), whose specialties are local – or ‘localized’ – dishes, such as the aforementioned svid sheep’s head (3,750 ISK – $27) or the reindeer burger (3,950 ISK, about $28) or the classic burger (from 2,650 ISK, or about $19).
Many guests also come here for unusual “exclusive” hot dogs – with lamb, salmon or langoustine (2,000–3,000 ISK, or $15–20). Also available is grilled whale steak (4,250 ISK, about $30) and a wide selection of more ordinary dishes (lamb, fish, salads, vegetarian). You’ll also find a variety of traditional appetizers – puffin, hakarl, dried fish – all for about 2,000 ISK ($15) each. A large beer costs 1,200–1,500 ISK, or about $8–11. Happy hour (usually): 4–6 p.m.
Islenski Barinn is a good yet inexpensive restaurant, and if you want to try local specialties, you will find it hard to find better value. It will also be very difficult to match this wide selection of these traditional dishes elsewhere.
Another place worth recommending is the aforementioned (once small, now quite large) cafe-restaurant Cafe Loki right next to Hallgrimskirkja Church. It serves a variety of dishes and snack sets with the aforementioned specialties at prices between 2,500 and 3,500 ISK ($18–25).
Traditional Icelandic dishes are also served by, among others, the Ingolfsskali restaurant on Road 374, near Selfoss, and more expensive restaurants in the capital – such as Kopar and Matur og Drykkur (more about them later in the article).
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Eating out – where to go for lunch or dinner
Unfortunately, the popular rule of thumb, “you want to eat cheap – get out of your hotel and eat what the locals eat,” works poorly in Iceland. Simply put, Icelandic wages are much higher than the European average, so the high prices don’t impress locals much. If you want to explore the island and its cuisine without ruining your budget, you are facing quite a challenge.
Newest trend: ‘matholl’ food halls in Reykjavik
The latest trend in the restaurant segment is mathölls, known in English as food halls. These are sizable open halls where many different restaurants offer their dishes on separate stands. You could say that they are ‘street food halls’ – you order your food over the counter, and eat at a public, shared ‘table’ area. This works very well in the Icelandic climate – the prices can be a bit lower (although they rather rarely are), there is a good selection of various dishes, and the whole setting encourages conversation and a relaxed atmosphere.
For the time being (early 2023) matholls are a specialty of Reykjavik. There is, for example, Matholl Mjólkurbúið in a beautiful former dairy building in Selfoss, and Mathöll Suðurlands in Hveragerdi, but these are exceptions. Meanwhile, in Reykjavik itself there are already 6 such places, including perhaps the most popular one, located in a former post office building in the very center of Reykjavik – Pósthús. Other matholls in Iceland’s capital are: Borg29, Grandi, Hlemmur, Höfði and Vera.
Map: matholls (food halls) in Reykjavik – click to open the interactive map.
Dining prices at ‘matholls’
Matholls are relatively inexpensive places, but you can’t say that they are cheap. How much does it cost to “dine out” in Iceland? Here are prices for sample main dishes from some of the matholl halls:
- spaghetti carbonara: 2,290 ISK ($16);
- brydja (lamb soup): 2,500 ISK ($18);
- pizza ‘Goodness’: 2,690 ISK ($19);
- veggie burger with fries and a drink: 2,690 ISK ($19);
- beef burger: 3,000 ISK ($21);
- fish & chips: 3,400 ISK ($24);
- fish dish ‘Plokkfiskur’: 3,690 ISK ($26);
- rib-eye steak: 5,390 ISK ($38.50).
Example menus of selected restaurants from different matholls:
Bustling and diverse matholls attract quite a few tourists and locals. They offer quite a wide variety of different dishes under one roof. They certainly represent a new and rapidly growing trend in Reykjavik’s gastronomy. They are certainly worth a visit while walking around the city.
Inexpensive restaurants around Iceland
If you want to eat out without spending too much, you can choose one of the local restaurants operating throughout Iceland. Prices for meals at such places are similar to those at matholls, but as restaurants they (usually) offer a bit more peace and quiet, though a smaller selection of dishes.
Seabaron, Reykjavik
Among the iconic small eateries, the Seabaron and Fish and Chips Vagninn near Reykjavik harbor are certainly worth pointing out. In the first one they serve delicious and relatively inexpensive seafood, but expect quite a crowd there and a line that often stretches out in front of the building. The second place is a street food trailer with fried fish and French fries. The fish is delicious and – again: relatively – inexpensive, but the place offers no protection from wind, cold or rain. However, both places serve very tasty food and the specific atmosphere of Reykjavik harbor and are really worth a visit. Check out my suggestion for a walking tour of Reykjavik: Sightseeing Reykjavik – Top Things to See and Do.
Restaurants with interesting menus and average (for Iceland) prices can also be found, for example, in Grindavik (Papa’s), Arnarstapi (Arnarbaer), Geirseyri (Stúkuhúsið), Husavik (Fish & Chips in the harbor), Akureyri (Akureyri Fish & Chips and Greifinn), Blonduos (B&S Restaurant), or Egilsstadir (Skálinn Diner).
A very interesting place is Fridheimar Restaurant in Reykholt in the Golden Circle. This restaurant is placed directly in a greenhouse and serves primarily dishes based on homegrown tomatoes.
You’ll also find small restaurants at some campsites and major tourist attractions – such as at Reynisfjara, Dimmuborgir, Skutustadagigar or Stokksnes. However, here the value for money can be a bit worse, and the choice of dishes is more limited.
You’ll find quite good restaurants, though usually with a severely limited menu, also by the larger geothermal pools – e.g. Fludir, Geo Sea (Husavik), Vok baths (Egilsstadir), Myvatn baths or Sky Lagoon. A very good restaurant (Lava) also operates in the Blue Lagoon complex, but don’t count on cheap snacks there…
Relatively good restaurants are also run in some mountain refuges like Hveravellir, Kerlingarfjoll, Hrauneyjar, Volcano Huts or Laugarfell. Here, however, even if the quality of the food itself is high, the decor and service tend to be a bit more hostel-like, and the prices – well, still Icelandic (see below for details).
Dining prices in small restaurants
Prices in restaurants are, of course, influenced by many factors. Even a small restaurant, but in a hard-to-reach location, can be more expensive. On the other hand, even a simple dish in a better restaurant can be quite sophisticated, but also expensive (an example would be the aforementioned hot dogs at $13.50 each).
That’s why I’m presenting below some real examples from restaurants in various places in Iceland. I hope this will help you form your own opinion on the subject.
Restaurant prices at the Hveravellir mountain hut
- seafood soup: $16.50 (2,300 ISK);
- toasted sandwiches (with ham, pepperoni or a vegetarian version): $13.50 (1,900 ISK) per serving;
- cod dish: $22 (3,100 ISK);
- vegetable goulash: $21 (2,950 ISK);
- apple cake: $6 (800 ISK);
- coffee, tea, hot chocolate: $3.50 (500 ISK);
Prices at the GeoSea geothermal pool bar in Husavik
- beer 0.5 l: $7 (1,000 ISK);
- apple cider 0.5 l: $7 (1,000 ISK);
- vodka with juice: $7 (1,000 ISK);
- red wine: $10 (1,400 ISK);
- mineral water: $2.50 (350 ISK);
- goulash soup: $13 (1,790 ISK);
Prices at fish & chips stall in Arnarstapi
- fish & chips: $11 (1,500 ISK);
- burger with fries: $11.50 (1,600 ISK);
- fish burger with fries: $12 (1,700 ISK);
- fries: $6 (800 ISK);
- water: $2 (250 ISK);
- juice: $1 (150 ISK);
Prices at Arnarbaer Restaurant in Arnarstapi
- pizza (delicious!): 1,800–2,500 ISK ($13–18);
- fish & chips: 2,250 ISK ($16);
- 150 g burger with fries: 2,700 ISK ($19);
- lobster soup: 2,200 ISK ($15.50);
- cake: 1,000 ISK ($7);
- 0.5-liter draft beer: 1,200 ISK ($8.50);
- a glass of wine: 1,400 ISK ($10);
- coffee/tea: 550 ISK ($4);
Prices at KFC Reykjavik
- Twister: $7.50 (1,039 ISK);
- Chicken salad: $9 (1,289 ISK);
- family bucket for 4 people: $42 (5,799 ISK);
Hot dog is good for everything
A typical Icelandic hot dog
As the saying goes, “beggars can’t be choosers,” so hot dogs are a very popular snack in Iceland. Apparently, Bill Clinton once said that Icelandic hot dogs are the best in the world… In any case, it is certainly a warm meal and relatively inexpensive.
They are available in most gas station stores and in bars and trailers all over the island. For about 500 ISK ($3.50) you’ll get a roll with the traditional sausage, mustard and/or ketchup and fresh and/or roasted onions. Other toppings or options are an absolute rarity, except in places like the aforementioned Islenski Barinn, where they are about 4 or even 5 times more expensive.
Iconic hot dog stand in downtown Reykjavik
An iconic hot dog stand in central Reykjavik is Bæjarins Beztu Pylsur (literally, “The best hot dogs in town”) on a small square on the corner of Tryggvagata and Steinbryggja. In my opinion, these hotdogs are good, of course, but they don’t stand out for anything special, except for the fact that the line for them can be really long. Well – iconic places have their own peculiarities… As an aside: the company has several other stands in the city, with much shorter lines.
Anyway, compared to many European gas stations, the choice of toppings and sauces for hot dogs is very limited in Iceland. Nevertheless, sometimes it is certainly worth reaching for such a quick and cheap snack during the day to gain strength for the next waterfalls, canyons, glaciers and volcanoes.
Best restaurants in Iceland – a true taste of luxury
If you plan to stay in hotels for your entire stay in Iceland (or most of it), be prepared to spend seriously on food as well. Like hotels, good restaurants are also quite expensive in Iceland. And even restaurants that are smaller and cheaper are still much more expensive than the vast majority of even the really good restaurants in other European countries.
Icelandic seafood
Most of Iceland’s best restaurants are located in Reykjavik itself, and outside it – at high-end hotels in smaller towns (including Lava in the Blue Lagoon complex).
The chefs specialize primarily in lamb and seafood dishes. Many such establishments also serve dishes based on organic local ingredients, sometimes even cooked with geothermal heat. Of course, the more exclusive the resort, the higher the restaurant prices.
Most of the good and interesting restaurants in Iceland are in Reykjavik itself. These include Fiskmarkaðurinn, Grillmarkaðurinn, Dill Restaurant, Hereford and the aforementioned Kopar and Matur og Drykkur.
The famous tomato soup at Friðheimar
Outside the capital, places worth noting include Friðheimar in Reykholt (a totally unique organic restaurant in a greenhouse!), Framtíð at the hotel of the same name in Djupivogur in the east, Nordic Restaurant east of Egilsstadir and Vogafjós Farm Resort in the Myvatn region, among others.
If you don’t want to experiment too much, a good idea is to dine at restaurants in the Foss Hotel chain. There are quite a few of them on the island and they all keep a high standard.
Prices at the top Icelandic restaurants
Of course, those with a hefty wallet have a wide variety of options available to them in Iceland. Both dishes popular around the world – such as steaks, pasta or lobster – and “endemic” specialties of local cuisine (puffin, fermented shark, whale) are available in very elegant restaurants with charming service and beautiful views.
In general, an ‘ordinary’ main course in such classier restaurants costs between 5,000 and 7,000 ISK, or between $35 and $50. A lamb dinner dish can cost $40 or more, a lobster (or langoustine) one $70 or more. In such places it is hard to get a dessert for less than the equivalent of $10. Therefore, a restaurant dinner for $90 per person (plus drinks!) is nothing special in Iceland.
If your budget allows it, it’s definitely worth trying, for example, the Adventure Menu at Kopar Restaurant (a 6-course meal composed by the chef costs 11,500 ISK ($82) here, or a round 20,000 ISK (about $145) with professionally selected wine). Fish, vegan and other menus are also available.
A similar concept (6-course meals composed in advance) is also offered at Matur og Drykkur (literally: food and drink): dinner here costs 14,900 ISK ($106), and specially selected wine is an extra 10,900 ISK ($78).
Sample prices at good restaurants in Iceland
- Arctic char with fennel and citrus salad (appetizer): $20 (2,850 ISK);
- reindeer sausage with potato salad and horseradish mayonnaise: $22.50 (3,150 ISK);
- langoustine soup with coconut milk and tangerines: $23 (3,200 ISK);
- grilled puffin breast with malt sauce: $35 (4,950 ISK);
- mountain lamb with grilled mushrooms, pickled beet, etc.: $42 (5,900 ISK);
- tenderloin steak with asahi chips and smoked chili bearnaise: $46 (6,490 ISK);
- langoustine tails with coconut, garlic and pineapple: $70 (9,900 ISK);
- blueberry ice cream with chocolate, berries and blueberries: $15 (2,150 ISK);
- set menu: appetizer: smoked puffin; main course: whale steak; dessert: skyr: $46.50 (6,500 ISK);
- tasting menu (min. 2 persons): $85 (11,900 ISK) per person.