With breathtaking waterfalls and phenomenal glaciers, Iceland has landscapes one can only dream of but is known to be a costly place. Dining out is expensive, and one would require a big budget. No worries, though! There’s more than one way to enjoy mouthwatering meals at budget prices. This guide will help you on a journey through relatively cheap food offerings while traveling in Iceland on a budget. With a little bit of planning, you can enjoy local flavors and keep your travel costs down.
Why Eating in Iceland on a Budget Matters
There are many people for whom a trip to Iceland is a dream, and food prices are one of the biggest surprises in this regard—a simple meal in a simple dinner may cost above $30-$60 USD, and that adds up. You could have fun and save for thrilling activities like chasing the Northern Lights or whale watching instead of spending all your money on tasteless food. Coming to the better news, there are many deliciously decent price range options available throughout Iceland. Thus, one does get the chance to taste the unique culinary world without emptying the wallet. Let us check out a few of the best-priced foods in Iceland.
Icelandic Hot Dogs: A Tasty, Cheap Classic
The famous hot dogs, or pylsur, are undoubtedly among the cheapest foods in Iceland. But are they really hot dogs? A unique flavor comes from a mix of lamb, pork, and beef. Go to Bæjarins Beztu Pylsur in Reykjavik, the iconic hot dog stand where locals and tourists alike come to get their hot dogs. For about 4-5 USD, one can get eina með öllu (with everything), which is lavishly topped with crispy onion, mustard, and creamy remoulade sauce. An inexpensive hot dog filling enough to be eaten on the go while sightseeing. Pro tip: Order at least two; you will wish you had.
Soup in a Bread Bowl: Warm and Wallet-Friendly
If you need something warm to work your way through your insides on a cold day in Iceland, you cannot go wrong with a bunch of options serving it pretty cheap. Hearty bowls of seafood or lamb soup served in a bread bowl can go for around $10-$15 at Icelandic Street Food in Reykjavik. Even better, you can get free refills on the soup, as well as free desserts like waffles or cookies. Thus, perfect for a travel budget wanting a healthy eat without breaking too much cash. It boasts a cozy ambiance and friendly staff, so it’s definitely a must-stop for cheap, hearty meals that will keep you warm inside.
Grocery Store Finds: Cook Your Own Meals
For maximum savings, go to the cheaper grocery stores like Bónus or Krónan. These provide the cheapest ingredients to prepare your own meals. Some essentials to stock up on are bread, cheese, and peanut butter (or sunflower butter), along with some fruit for sandwiches or snacks. For a couple, groceries could be around $50 to $100 per week, while costs for a meal eaten outside the home would amount to $30. Keep in mind that Icelandic foods are preservative-free, so they would probably get moldy faster than you expect. You would need to shop every other day and take your own reusable bags, as the stores will not provide one. Bringing your lunch with you could also be a cute budget-saving idea while exploring Iceland, especially in the off-the-map places where a restaurant may be hard to find.
Bakery Treats: Sweet and Affordable Delights
Icelandic bakeries are a true treasure trove of reasonably priced goodies. Try places such as Brauð & Co. or Sandholt in Reykjavík for freshly baked goods like pastries, breads, and the national candy snúður (a kind of Scandinavian cinnamon roll with a twist). These sell for about $2-$5 USD each, making them a great bite you can grab for a quick breakfast or light snack. Icelanders love their baked snacks, and you find the bakeries in most towns. For a special treat, try a bragðarefur—ice cream mixed with three toppings of your choice. It’s a fun, affordable way to indulge your sweet tooth for about $5-$7 USD.
Seafood on a Budget: Fresh and Filling
As locals love sourcing their menu from the clean, pristine waters surrounding Iceland, seafood is a must-try on your wanderings around this island. Although most fancy seafood restaurants offer high-priced menus, a reasonable amount, like $16 USD, will get you a serving of fresh fish, like cod or salmon, with a side and sauce at Fisherman Fish Shop & Kitchen in Reykjavík. This is quite a bargain for quality seafood in a country so known for dining-out-topping deals. Look towards lunch specials at almost all eateries, because they have been much lower than the other dinner menus. Dining at these budget venues allows you to sample some of Iceland’s freshest flavors without having to blow an entire travel budget on one meal.
Tips for Eating Cheap in Iceland
If you want to save on food, the best way is to plan ahead. Buy alcohol at the duty-free shop at Keflavík Airport, where prices are less than those you will see at bars or government-run ‘Vínbúðin’ stores. If you stay in a hostel or Airbnb house with a kitchen, you are welcome to cook your meals using the grocery finds. Avoid convenience stores like 10/11: they are more expensive than Bónus or Krónan, actually. Lunch is the best meal to eat at restaurants, since lunch menus usually offer lower prices than dinners. Bringing snacks from home, like granola bars, helps you avoid overpriced, nefarious roadside shops. These are little, little pie-in-the-sky things one could do while traveling Iceland on a budget.
Enjoy Iceland’s Food Culture Without Overspending
Eating affordable foods in Iceland does not stop one from tasting the special foods of the country. From hot dogs that one would probably think could not fill an Icelandic stomach to the hearty soups some bakeries serve, you will find such delightful meals that definitely keep your wallet happy. Shopping smart with the appropriate grocery stores and choosing affordable dining options means having more money to spend on adventures at what Iceland has to offer. So fill your reusable bag with goodies from the hot dog stand and savor all the flavors of Iceland without going broke!