10 Cheapest Restaurants in Reykjavik

Reykjavik’s affordable restaurants exist because of a focus on simple and specialized menus, as well as a counter-service model that minimizes overhead costs. The high cost of living in Iceland means that knowing where to eat in Reykjavik on a budget is a must. These cheap places to eat in Reykjavik thrive by perfecting a single item, like the hot dogs at Bæjarins Beztu Pylsur, which allows for efficiency and bulk purchasing of ingredients. Food stands, food trucks, and small, no-frills eateries with limited seating dominate the budget food scene, providing a necessary alternative to the city's expensive full-service restaurants.

The city's low-cost dining options are concentrated in specific types of establishments that prioritize speed and specialization. These restaurant types are listed below.

• Pylsuvagnar (Hot Dog Stands): These are iconic street carts or small kiosks that specialize in serving Icelandic hot dogs with a specific set of condiments.
• Soup Kitchens: Not in the charitable sense, but small, casual restaurants like Icelandic Street Food that focus almost exclusively on serving traditional Icelandic soups.
• Food Trucks and Food Vans: Mobile kitchens, often located in the Old Harbour area, serving simple, fresh meals like fish and chips.
• Noodle Bars: Small eateries with a limited menu of noodle soups, such as Thai-style from Noodle Station or ramen from Hi Noodle.
• Local Fast-Food Chains: Icelandic-owned chains like Aktu Taktu offer burgers, fries, and sandwiches as a local alternative to international brands.
• Fish and Chips Stalls: Specialized vendors, often in food truck or kiosk form, that serve fresh, locally caught fish with fried potatoes.

The setting inside Reykjavik’s affordable restaurants is functional, casual, and compact. These establishments operate with a counter-service model and offer limited or no seating. Bæjarins Beztu Pylsur is an outdoor stand with no seating at all. Noodle Station is a small, narrow space with a few stools, designed for a quick meal. Icelandic Street Food offers a contrasting cozy and communal atmosphere, with wooden tables and a welcoming, home-like feel, though the space is still small. The focus is on the food, not on formal service or decor.

Yes, cheap restaurants in Reykjavik serve good food. Quality is achieved through specialization and the use of high-quality local ingredients like Icelandic lamb and fresh Atlantic cod. Bæjarins Beztu Pylsur uses Icelandic lamb in its hot dogs, which gives them a distinct flavor. Fish and Chips Vagninn serves fresh cod caught from the adjacent harbor. The high volume of customers at these popular spots ensures that ingredients are used quickly, maintaining freshness. The food is simple, but it is prepared well.

Yes, cheap restaurants in Reykjavik use fresh ingredients, a necessity for their simple menus such as fish and chips, lamb soup, and Icelandic hot dogs. The quality of a dish like fish and chips depends entirely on the freshness of the cod, which places like Fish and Chips Vagninn source directly from the harbor. Traditional lamb soup from Icelandic Street Food is made with local Icelandic lamb. Even the hot dogs from Bæjarins Beztu Pylsur rely on the quality of the Icelandic meat blend. The reliance on a few core local ingredients makes freshness a key component of the business model.

The average cost for a cheap meal in Reykjavik ranges from 700 ISK to 3,000 ISK per person. A single item like a hot dog from Bæjarins Beztu Pylsur costs under 1,000 ISK. A more substantial meal, such as a large bowl of noodle soup from Noodle Station or a serving of fries from Reykjavik Chips, is available for between 1,500 and 2,500 ISK. A full meal of fish and chips or a bread bowl of soup from Icelandic Street Food costs between 2,500 and 3,500 ISK.

The cheapest restaurants in Reykjavik provide a mix of traditional Icelandic street food and simple international dishes. These meals are listed below.

• Pylsur (Icelandic Hot Dogs): A hot dog made from a blend of lamb, beef, and pork, served on a steamed bun with toppings like crispy fried onions, raw onions, ketchup, sweet brown mustard, and remoulade.
• Kjötsúpa (Lamb Soup): A traditional, hearty soup made with Icelandic lamb, root vegetables like potatoes and rutabaga, and herbs.
• Fish and Chips: Freshly caught cod, often beer-battered, served with fried potatoes.
• Noodle Soups: Asian-style noodle soups, such as Thai beef noodle soup or Japanese ramen, served in a large bowl.
• Plokkfiskur (Fish Stew): A traditional Icelandic dish of mashed fish, potatoes, and onions, often served with rye bread.
• Fries with Sauces: Belgian-style fries served in a cone with a wide selection of dipping sauces.

The average wait time in Reykjavik’s cheapest restaurants is between 5 and 15 minutes. Counter-service establishments like Bæjarins Beztu Pylsur and Noodle Station have very short waits, with service taking just a few minutes. At popular spots like Icelandic Street Food or Fish and Chips Vagninn, especially during peak lunch hours or in the summer tourist season, the queue can extend to 15-20 minutes.

No, most of the cheapest restaurants in Reykjavik do not extensively cater to dietary restrictions. Small kiosks and food trucks operate in confined spaces with a high risk of cross-contamination, making it difficult to guarantee gluten-free meals. Their menus are highly specialized and lack alternative preparations. Larger fast-food outlets may have more information, but options remain limited.

Yes, vegan options are available at cheap Reykjavik restaurants including Noodle Station, Reykjavik Chips, and Icelandic Street Food. Noodle Station offers a vegetable-based broth for its noodle soup. Reykjavik Chips serves vegan fries, and many of its dipping sauces are plant-based. Icelandic Street Food sometimes offers a vegan soup option. While not widespread, it is possible to find simple vegan meals.

Yes, family-friendly options are available at cheap restaurants in Reykjavik in establishments like Icelandic Street Food, Aktu Taktu, and Fish and Chips Vagninn. The food itself, such as hot dogs, fish and chips, and fries, is simple and appeals to all ages. The atmosphere in these establishments is casual and informal, making them comfortable for families with children. Places like Icelandic Street Food are particularly welcoming to families.

Yes, many of the cheapest restaurants in Reykjavik offer delivery through local third-party applications like Wolt and Aha.is. Local chains such as Aktu Taktu and pizzerias like Eld Smidjan are widely available on these platforms. Some smaller, independent eateries, especially those in the downtown area, also partner with these services for local delivery. Food stands and mobile trucks typically do not offer delivery.

Yes, Reykjavik's affordable restaurants offer unique cuisines in the Icelandic context including Thai noodle soup and Japanese ramen. While many focus on local staples, establishments like Noodle Station, with its authentic Thai noodle soup, and Hi Noodle, with its Japanese ramen, provide specific international foods. These restaurants make less common cuisines accessible at a low price point in a city where dining out is expensive.