Affordable Restaurants In Reykjavik

Best Family Restaurants In Reykjavik

Dining out in Iceland is notoriously expensive. There’s no getting around it. But we did manage to find several more affordable restaurants that didn’t completely break our trip budget and gave us a nice taste of the local flavor.

All of these restaurants are family-friendly, as budget-friendly as you can find in Reykjavik, and located in the city center.

Braud & Co- This wonderful bakery is easy to spot with its quirky and colorfully painted exterior. The sight of their cinnamon rolls in the window will make you stop to come inside. Try their dense Nordic rye bread with seeds and grains. It lasted for days, and we loved it. 16 Frakkastigur.

Braud & Co Bakery

Sandholt- Another cozy bakery with a good selection of sandwiches and pastries. They also sell pre-made sandwiches if you need to pick something up to take with you. You can watch the bakers at work too. Opens at 6:30am. 36 Laugavegur.

Bryggjan Brugghus Bistro & Brewery- A good stop for craft beer and good food located on the harbor with views. Happy hour. Grandagarður 8.

Bæjarins Beztu Pylsur- Iceland’s famous hot dog stand, once visited by Bill Clinton, sells lamb-based hot dogs served in a warm bun with your choice of ketchup, sweet mustard, remoulade, crispy fried onions, and raw onion. Trust us and order “one with everything, please.” Cost is roughly $4.50 USD. Takes credit card. 1 Tryggvagata.

Saegreifinn (The Sea Baron)- Located right next to the marina, this small place is famous for their lobster soup (not to be confused with thick lobster bisque) served with bread and Icelandic butter. Tip: Spread butter on the bread before dipping in the soup! This restaurant is almost always crowded. Communal seating along long tables and benches. 8 Geirsgata.

Hamborgarabulla Tomasar- Your every day burger joint located directly opposite the Iceland Air Marina Hotel. You can order a kids meal or the "deal of the century"-- a burger, fries, and coke for 1,990 ISK (about $20) or a shake instead of coke for 2,990 kro. 1 Geirsgata.

Kaffivagninn- Located on the harbor, you’ll find more locals here than tourists. It’s warm and cosy and is known for their fish and chips. The soup is excellent as well. It has a great spot on the dock and offers half price pints during happy hour. 10 Grandagardur.

Kaffihaus Vesturbaejar- Located near Vesturbaejarlaug swimming pool. Offers coffee and pastries as well as lunch and dinner. Beers on tap. Melhagi 20-22 (corner of Melhagi and Hofsvallagata).

Valdís Ice Cream- Licorice flavored ice cream anyone? They offer plenty of flavors to satisfy everyone. 21 Grandagardur.

Grocery Stores

You’ll save lots of money by stocking up on breakfast foods, snacks, and lunch items at local grocery stores. Bónus and Kronan grocery stores have multiple locations throughout Iceland with Bónus generally offering the best value. Just look for their pig logo. You’ll find a Bónus in downtown Reykjavik, and both a Bónus and Kronan in Selfoss (conveniently located on your route along the Ring Road).

Tip: Pack your favorite granola bars from home for an easy and portable snack. If you have picky eaters, pack a few boxes of mac and cheese and peanut butter for a quick and easy meal. 

Airport Duty Free

You can save some serious money on food, and alcohol in particular, by stopping at the large duty free store near baggage claim at the airport when you arrive. Note that you want to go to the large store near baggage claim, not the small store found in the Arrivals Hall. Now is a good time to purchase beer or wine as the price of alcohol in Iceland is super expensive, especially at restaurants.

For the kiddos, you’ll find plenty of goodies here as well. If you’re a chocolate lover, the duty free store offers good prices compared to stores outside of the airport. 

More About Iceland