15 Best Cheap Eats in Reykjavík, Iceland

Reykjavík has a reputation for being expensive, and it’s not undeserved: groceries, restaurants, and even snacks can cost more than most travelers expect. But the city also has a surprising number of places where you can eat well without overspending. These restaurants, cafés, stalls, and counters deliver quality food at reasonable prices, making them ideal for travelers who want to experience Icelandic flavors without the big bill.

The following 15 cheap eats focus on meals that feel satisfying and local, from hot dogs and seafood soups to hearty sandwiches, dumplings, pastries, and classic Icelandic dishes. They’re reliable, easy to navigate, and great fits for a traveler’s budget.

1. Bæjarins Beztu Pylsur

If you’ve seen any food list for Reykjavík, you’ve probably seen this hot dog stand — and for good reason. The famous Icelandic pylsur (hot dog) is a must-try snack, and this stall has been serving them since 1937. The hot dogs are made with mostly lamb, giving them a slightly richer flavor than American or German versions.

Ordering “one with everything” gets you ketchup, mustard, fried onions, raw onions, and remoulade. It’s simple, quick, and affordable — and one of Reykjavík’s most iconic cheap eats.

What to order: Hot dog “with everything”

Why it’s great: Fast, classic, and genuinely tasty.

2. Reykjavík Street Food

Reykjavík Street Food serves traditional comfort dishes at fast-casual prices. Their fish soup is one of the best budget meals in the city — creamy, flavorful, and generously portioned. They also serve plokkfiskur (Icelandic fish mash stew), lamb soup, and other comforting classics.

This spot feels welcoming and is especially good for travelers visiting in colder weather who want something warm without a hefty bill.

What to order: Fish soup or plokkfiskur

Why it’s great: Affordable, filling Icelandic comfort food.

3. Noodle Station

Noodle Station is one of the most popular low-cost sit-down options in Reykjavík. The menu focuses on Thai-inspired noodle soups and stir-fries, all served quickly and in large bowls. It’s an excellent option when you’re cold, hungry, and want something filling for under the usual Reykjavík price point.

What to order: Beef noodle soup

Why it’s great: Huge portions, great value, and fast service.

4. Hlöllabátar

Hlöllabátar is known for its hearty submarine-style sandwiches filled with meats, sauces, and vegetables. The bread is soft and warm, and the portions are more than enough for a full meal. It’s a popular late-night stop, but it works well at any time of day.

What to order: Hlölli special

Why it’s great: Generous, satisfying sandwiches at an affordable price.

5. Icelandic Street Food

Not to be confused with Reykjavík Street Food, this spot focuses heavily on soups and stews. They offer free refills, making it one of the best-value meals in Reykjavík. The lamb stew and seafood soup are especially good. The atmosphere is casual and friendly, and everything is served quickly.

What to order: Free-refill soups

Why it’s great: Some of the best value in central Reykjavík.

6. 101 Reykjavik Street Food (Yes — another one!)

There are a lot of “street food” names in Reykjavík, but 101 is a distinct stall serving fast, flavorful dishes like chicken skewers, wraps, and seafood plates. It’s reliable for a quick meal when you’re exploring downtown.

What to order: Skewers or wraps

Why it’s great: Quick food that’s easy on the wallet.

7. Fish & Chips Vagninn

Located near the harbor, Fish & Chips Vagninn serves crispy fish and thick, well-seasoned chips at a price that’s very reasonable by Icelandic standards. Portions are solid, and the fish is fresh and flaky.

What to order: Classic fish and chips

Why it’s great: Affordable seafood in a prime location.

8. Brakefast (inside Hlemmur Mathöll)

Brakefast serves budget-friendly breakfast sandwiches, pastries, and coffee inside Hlemmur Mathöll, one of Reykjavík’s most popular food halls. It’s a great place to start your day without spending too much.

What to order: Breakfast sandwich

Why it’s great: Modern breakfast at a fair price.

9. Mai Thai Market & Noodle House

Mai Thai is part Asian grocery store, part noodle counter. Their stir-fries and curries are some of the most reasonably priced meals in Reykjavík. They’re simple, flavorful, and come in large portions.

What to order: Pad thai or Thai curry

Why it’s great: Affordable Asian comfort food away from the tourist crowds.

10. Voffluvagninn (The Waffle Wagon)

This small waffle truck near the waterfront serves waffles with chocolate, caramel, or berries. It’s inexpensive, fun, and ideal for a quick dessert or snack while walking around the city.

What to order: Nutella waffle

Why it’s great: Sweet, handheld, and perfect for strolling.

11. Deig

Deig is known for doughnuts, bagels, sandwiches, and pastries. Many of the items are around the “budget-friendly” range (by Reykjavík standards), and they make a great breakfast or mid-day snack. The bagel sandwiches in particular are hearty and well priced.

What to order: Everything bagel sandwich or doughnuts

Why it’s great: Great breakfast and snacks with fair pricing.

12. Hlemmur Mathöll (Food Hall)

Hlemmur Mathöll offers a range of stalls with varied price points. You can grab affordable tacos, Vietnamese dishes, Middle Eastern plates, pastries, and coffee. It’s an ideal choice for groups or travelers who want variety without committing to a single restaurant.

What to order: Try two small dishes from different stalls

Why it’s great: A budget-friendly food-hall experience with lots of flavor.

13. Reykjavík Chips

Reykjavík Chips serves Belgian-style fries with a large selection of sauces. It’s simple but addictive, and it makes for a cheap, no-frills meal or snack. The portions are large enough to share.

What to order: Fries with garlic sauce

Why it’s great: Fun, affordable, and surprisingly filling.

14. Pho Vietnamese Restaurant

Pho offers warm, comforting Vietnamese dishes with soups, noodles, and rice plates. Prices are significantly lower than most sit-down restaurants in the city, and the portions are generous.

What to order: Beef pho

Why it’s great: Consistent comfort food that won’t break the budget.

15. Kaffi Loki

Kaffi Loki sits across from Hallgrímskirkja and specializes in Icelandic traditional foods. While some dishes can be pricey, their rye bread ice cream, small plates, and simple sandwiches are great affordable choices. It’s one of the easiest places for travelers to try Icelandic flavors without spending a lot.

What to order: Rye bread ice cream or small plate samplers

Why it’s great: Classic Icelandic dishes in a casual café environment.

Final Bite

Reykjavík may be an expensive city, but you can still eat well on a budget if you know where to go. These 15 cheap(er) eats offer comforting soups, fresh seafood, hearty sandwiches, global flavors, and classic Icelandic dishes, all for prices that make traveling through Iceland a little easier. Whether you’re grabbing a quick bowl of noodles or treating yourself to the city’s most famous hot dog, these spots deliver great meals that won’t drain your travel budget.