Cheap Places to Eat in Reykjavik, Iceland

Reykjavik, Iceland’s capital, is known for its stunning landscapes and unique culture, but dining out can often come with a hefty price tag. However, plenty of affordable options exist for travelers who want to enjoy delicious local food without breaking the bank. From cozy cafes to casual eateries, you can experience the flavors of Iceland without the high cost.

In this guide, we’ll explore some of the best cheap places to eat in Reykjavik, offering tasty meals that fit within a budget while still providing an authentic culinary experience.

1. Bæjarins Beztu Pylsur – The Best Hot Dog Stand

No visit to Reykjavik is complete without trying one of the city’s famous hot dogs, and there’s no better place to do so than Bæjarins Beztu Pylsur. Located near the harbor, this humble hot dog stand has been serving delicious hot dogs since 1937, earning its reputation as one of the best in Iceland.

A hot dog here is more than just a simple snack. It’s served with crunchy fried onions, raw onions, sweet mustard, ketchup, and a special Icelandic remoulade. These hot dogs, made with a combination of lamb, pork, and beef, are a favorite among locals and tourists alike. Plus, it’s one of the cheapest meals you can find in Reykjavik, with each hot dog costing around 550 ISK (about $4).

• Location: Tryggvagata 1, 101 Reykjavik
• What to try: The classic hot dog with "everything" on it
• Price range: Under $5

2. Noodle Station – Affordable Asian Comfort Food

If you’re craving something warm and filling, head over to Noodle Station, a cozy little spot serving up steaming bowls of noodle soup. The menu here is straightforward, with options for beef, chicken, or vegetarian noodles, each served in a rich, flavorful broth.

The portions are generous, and the prices are reasonable, making it a perfect spot for a budget-friendly meal. A bowl of noodles will set you back around 1,500 ISK (approximately $11), which is a bargain by Reykjavik standards. The hearty, comforting soup is perfect for warming up on a chilly Icelandic day.

• Location: Laugavegur 86, 101 Reykjavik
• What to try: Beef noodle soup with extra chili
• Price range: $10-$12

3. Icelandic Street Food – Traditional Icelandic Soup on a Budget

For a taste of traditional Icelandic cuisine that won’t drain your wallet, Icelandic Street Food is the place to be. This casual eatery specializes in hearty Icelandic soups served in a bread bowl or with a side of warm, crusty bread.

The most popular dish here is lamb soup, a staple of Icelandic cuisine, but you can also find shellfish and fish soup options. The best part? The soup is all-you-can-eat, so if you’re really hungry, you can go back for seconds (or thirds) without paying extra. A bowl of soup costs around 1,790 ISK (about $13), which is a great deal considering the quality and portion size.

• Location: Lækjargata 8, 101 Reykjavik
• What to try: Lamb soup in a bread bowl
• Price range: $13-$15

4. Reykjavik Chips – For the Love of French Fries

Sometimes, all you need is a big plate of crispy, golden fries, and Reykjavik Chips delivers exactly that. This small shop specializes in thick-cut Belgian-style fries served with a variety of delicious dipping sauces. Whether you want something simple like ketchup or mayo, or you’re feeling adventurous with their homemade bearnaise or garlic sauce, Reykjavik Chips has you covered.

A large portion of fries with sauce costs around 950 ISK ($7), making it an affordable and satisfying snack or light meal. Pair it with one of their refreshing sodas for a quick and budget-friendly bite in downtown Reykjavik.

• Location: Vitastígur 10, 101 Reykjavik
• What to try: Large fries with garlic sauce
• Price range: $6-$8

5. 101 Reykjavik Street Food – Quick, Tasty, and Cheap

Another great option for budget travelers is 101 Reykjavik Street Food. This casual, fast-food joint offers a mix of Icelandic and international street food, including fish and chips, lamb stew, and seafood soup. The portions are generous, and the prices are reasonable, with most meals costing around 1,690 ISK ($12).

The fish and chips are particularly popular here, made with fresh Icelandic fish and crispy fries. It’s a great way to enjoy local seafood without paying the high prices you might find at more upscale restaurants.

• Location: Austurstræti 17, 101 Reykjavik
• What to try: Fish and chips or lamb stew
• Price range: $11-$13

6. Hlöllabátar – Iceland’s Famous Sandwiches

If you’re in the mood for a hearty sandwich, look no further than Hlöllabátar, one of Reykjavik’s most popular sandwich spots. These sandwiches are big, filling, and packed with ingredients, making them perfect for a quick lunch or dinner.

The menu offers a variety of options, including chicken, lamb, and vegetarian sandwiches, all served with a side of fries. Prices range from 1,000 ISK to 1,500 ISK ($7-$11), which is quite reasonable for the portion size. Hlöllabátar has been a local favorite for years, and it’s easy to see why.

• Location: Tryggvagata 26, 101 Reykjavik
• What to try: Hlölli sandwich with fries
• Price range: $7-$11

7. Dominos Pizza Reykjavik – Fast, Cheap, and Familiar

Sometimes, you just need something familiar, and Dominos in Reykjavik offers exactly that. While it may not be the most exotic option on this list, it’s one of the cheapest and fastest ways to grab a meal in Reykjavik. Dominos offers a range of pizzas with Icelandic twists, like the popular lamb and mushroom pizza.

You can often find deals and discounts, especially if you’re ordering for a group. A medium pizza costs around 1,990 ISK (approximately $14), making it a cost-effective option for a quick and filling meal.

• Location: Multiple locations in Reykjavik
• What to try: Lamb and mushroom pizza
• Price range: $10-$15

8. Devito’s Pizza – A Local Favorite for Late-Night Cravings

If you’re out late and need a budget-friendly meal, Devito’s Pizza is your go-to spot. This local pizza joint is known for its big slices and affordable prices, making it popular among both locals and tourists. A single slice costs around 500 ISK ($4), and a whole pizza starts at 1,500 ISK ($11), which is a great deal for Reykjavik.

Devito’s is open late into the night, so it’s perfect for grabbing a quick bite after a night out or a long day of exploring. The pizzas are made fresh with generous toppings, ensuring you get your money’s worth.

• Location: Laugavegur 126, 101 Reykjavik
• What to try: Pepperoni pizza slice
• Price range: $4-$11

9. Salka Valka – Healthy and Affordable

For those seeking healthier options, Salka Valka offers fresh, wholesome meals at reasonable prices. This small cafe focuses on healthy, organic ingredients, with a menu that includes salads, wraps, smoothies, and homemade soups.

The portions are filling, and the prices are fair, with most meals costing between 1,500 ISK and 2,000 ISK ($11-$14). It’s a great spot for lunch or a light dinner, and the atmosphere is cozy and welcoming.

• Location: Skólavörðustígur 23, 101 Reykjavik
• What to try: Chicken wrap or homemade soup
• Price range: $11-$14

10. Krua Thai – Affordable Thai Food

For those craving a bit of spice, Krua Thai is the perfect spot. This small, unassuming restaurant offers authentic Thai dishes at very reasonable prices. The menu includes classics like pad thai, green curry, and tom yum soup, all made with fresh ingredients and bold flavors.

Most dishes cost between 1,500 ISK and 2,000 ISK ($11-$14), and the portions are large enough to satisfy even the hungriest diners. Krua Thai is a great option for a filling meal that won’t break the bank.

• Location: Laugavegur 109, 101 Reykjavik
• What to try: Pad Thai or green curry
• Price range: $11-$14

11. Café Babalú – Quirky and Cozy

Café Babalú is a quirky little cafe located in the heart of Reykjavik. Known for its cozy atmosphere and eclectic decor, Babalú serves up a variety of affordable meals, including soups, sandwiches, and homemade cakes.

The prices are reasonable, with most dishes costing around 1,000 ISK to 1,800 ISK ($7-$13). It’s also a great spot for vegetarians, as they offer several meat-free options. Whether you’re stopping by for lunch or just grabbing a coffee and a slice of cake, Café Babalú is a charming and budget-friendly option.

• Location: Skólavörðustígur 22, 101 Reykjavik
• What to try: Tomato soup with grilled cheese sandwich
• Price range: $7-$13

12. Ali Baba – Middle Eastern Cuisine on a Budget

For a taste of the Middle East in Reykjavik, Ali Baba is the place to go. This small, family-run restaurant offers a range of Middle Eastern dishes, including falafel, shawarma, and kebabs, all at affordable prices. The portions are generous, and the flavors are authentic, making it a popular spot among locals.

Most meals cost between 1,200 ISK and 1,800 ISK ($9-$13), making it a great option for those looking to enjoy a flavorful, filling meal without spending too much.

• Location: Veltusund 3b, 101 Reykjavik
• What to try: Falafel wrap or chicken shawarma
• Price range: $9-$13

13. Mandi – Cheap and Tasty Middle Eastern Food

Another excellent option for Middle Eastern cuisine is Mandi, a small restaurant offering flavorful dishes at very reasonable prices. The menu includes falafel, shawarma, hummus, and other Middle Eastern favorites, all made fresh and served quickly.

Prices here are incredibly affordable, with most meals costing around 1,000 ISK to 1,500 ISK ($7-$11). Mandi is also a great option for vegetarians, as they offer several meat-free dishes.

• Location: Veltusund 3b, 101 Reykjavik
• What to try: Falafel wrap with hummus
• Price range: $7-$11

14. Bistro Mimir – Vegan-Friendly Budget Option

For vegans and vegetarians, Bistro Mimir is a must-visit. This cozy restaurant offers a range of plant-based dishes, including vegan burgers, salads, and soups. The prices are affordable, with most dishes costing between 1,500 ISK and 2,000 ISK ($11-$14), and the portions are generous.

Bistro Mimir is committed to using fresh, locally sourced ingredients, making it a great choice for those looking to eat healthy, sustainable food without breaking the bank.

• Location: Sundlaugavegur 30, 105 Reykjavik
• What to try: Vegan burger or lentil soup
• Price range: $11-$14

Final Thoughts on Eating Cheap in Reykjavik

While Reykjavik is often seen as an expensive destination, there are plenty of cheap places to eat if you know where to look. From iconic hot dog stands and cozy cafés to street food and international options, you’ll find a wide variety of budget-friendly meals throughout the city.

Whether you’re craving traditional Icelandic food or something more familiar like pizza or noodles, Reykjavik has something to satisfy every taste bud without breaking the bank. So, explore the city’s food scene and enjoy the flavors of Iceland without worrying about your wallet!