10 Best Budget Restaurants in Reykjavík for Cheap Eats

Finding the best budget restaurants in Reykjavík can feel like a challenge, especially when you’re trying to enjoy the local flavors without blowing your budget!

Obviously, settling for bland meals on your trip just to save a few bucks is no way to live – 👏🏼especially if you don’t have to! 👏🏼

The goal is to enjoy the country’s food scene without the guilt of overspending. And if you’re looking for the best restaurants in Iceland, Reykjavík would be the place to find them.

That’s why I’ve put together a list of the best budget restaurants in Reykjavík.

But before I get into that, why is food so pricey here?

Icelandic dishes are usually prepared with fresh, local ingredients.

However, since Iceland is a small island WAY out in the North Atlantic, a lot of things still have to be imported – which makes food expensive.

And while some restaurants are worth the splurge, those pricey dinners can eat into your travel budget FAST! (pun intended). 😉

So, whether you’re looking to spend less or just want to get the most value for your money, I’ll be sharing some of the best cheap eats in Reykjavík.

If you’re vegan, a meat-lover, or something in between, I know you’ll find something you’ll enjoy.

Let’s get into it!

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The Best Budget Restaurants in Reykjavík
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The Best Budget Restaurants in Reykjavík

When it comes to affordable restaurants in Reykjavík, the options are surprisingly diverse.

You can find hearty soups, quality street food, and healthy options, allowing you to enjoy Iceland’s food scene without overspending.

Let’s check out the 10 best places to eat in Reykjavík on a budget.👇

1. Fish and Chips Vagninn

Picture of the Exterior of Fish and Chips, One of the Best budget Restaurants in Reykjavík | Iceland with a View

Inspired by the classic dish, this local favorite features Atlantic cod, deep-fried to perfection and served with a side of mushy peas and thick-cut chips.

Not only is this spot absolutely adorable, but it’s also home to one of the best fish and chips recipes in the city.

It’s no surprise this place makes the cut for one of the best affordable restaurants in Reykjavík!

Grab a seat at one of the picnic tables, wrap yourself in a cozy blanket, and soak up the charm of the Old Harbor atmosphere.

Price: $
Open times: Mon-Sun: 11:00-9:00 p.m.

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2. Viet Noodles

Looking for authentic Vietnamese food in Iceland?

Then you have to try Viet Noodles!

Vietnamese cuisine is known for being healthy, and here they use fresh herbs and spices to bring out all the amazing flavors.

It’s a great choice for vegetarians, although they also serve chicken, beef and seafood.

Price: $
Open times: Mon-Fri: 11:30-10:00 p.m. // Sat and Sun: 12:00-10:00 p.m.

If you’re wondering how to travel in Iceland on a vegan or vegetarian diet, check out the video below.👇

3. Best Budget Restaurants in Reykjavík for Vegans: Mama Reykjavík

When looking for dining options in Reykjavík, cheap places to eat don’t have to skimp on taste or quality.

Mama Reykjavík is a cozy plant-based spot where they focus on sustainability and even grow their own ingredients to keep things fresh and seasonal.

You can expect healthy menu items from hearty soups and stews to salads and smoothies.

So you see, eating cheap in Iceland doesn’t mean having to resort to 2-minute noodles for every meal!

There’s so much to love about Mama Reykjavík which is why it’s on the list of best budget restaurants in Reykjavík!

Price: $
Open times: Mon-Sun 11:00-9:00 p.m.

Dealing with dietary restrictions can be challenging, especially while traveling, Find out how you can still enjoy your travel experience in Iceland if you’re on a gluten-free diet.👇

➡️ READ: Eating Gluten-Free in Iceland: Expert Tips, Best Restaurants + More

4. Hraðlestin (Hradlestin)

If you’re craving a spicy meal that’s full of flavor, you’ve got to try Hraðlestin!

I recommend the Chicken Thali. It’s a mixed plate option of two chicken dishes served with basmati rice and naan.

I’ve also heard great things about the Indian chicken pizza on the lunch menu.

Price: $$
Open times: Mon-Thurs 11:00-10:00 p.m., Fri 11:00-11:00 p.m., Sat/Sun 5:00 p.m. -11:00 p.m.
*Note: they have a Tuesday special that is always changing for a discounted option

If you’re keeping an eye on your spending, this list is full of some of the best budget restaurants in Reykjavík. But for more dining options beyond these budget-friendly spots, check out my complete Reykjavík Food & Drink Guide. 👇🏼

➡️ READ: Reykjavík Food & Drink Guide: The Best Foodie Hot Spots In Iceland’s Capital

5. Glósteinn Pizzeria

Is there anything better than a great pizza?

Maybe one with a thin, crispy sourdough crust and all your favorite toppings piled high?

Well, that’s exactly what you’ll find at Glósteinn Pizzeria!

They also have a couple of vegan pizzas, along with salads for a lighter meal.

Plus, they’ve got a play area for the kids, so you can enjoy your pizza while the little ones are having fun.

Price: $
Open hours: Mon 5:00-9:00 p.m. // Tues-Fri: 11:00-9:00 p.m. // Sat and Sun: 4:30-9:00 p.m.

6. Sægreifinn (Saegreifinn)

As you’re walking around the Old Harbour, be sure to drop by Sægreifinn for a cup of creamy lobster soup.

Paired with a homemade roll and Icelandic butter, this mouthwatering combo is a must-try!

They also have a great selection of fresh, sushi-grade fish cuts that can be cooked in-house or eaten raw.

Price: $
Open times: May 15 to August 31, 11:30-11:00 p.m. // September 1 to May 15 11:30-10:00 p.m.
*They close between 4:00 p.m. and 6:00 p.m. daily.

I have some excellent tips below if you’re looking for more ways to save on food and drink in Iceland.👇

7. Icelandic Street Food

This family-owned restaurant is passionate about bringing authentic Icelandic food to everyone at a great price.

The recipes come straight from the owner’s grandmother, and we all know grandma’s recipes are the best!

Their soups are served in bread bowls with unlimited refills (yes, UNLIMITED!). So, trust me, there’s no way you’re leaving hungry.

They serve fish stews and desserts like Icelandic pancakes and a Happy Marriage Cake.

Sounds like an ‘I do’ from me!

Price: $
Open hours: Mon-Sun 11:00-10:00 p.m.

If you’re craving more of Reykjavík’s food scene, why not take it to the next level?

Join the 👉 Reykjavík Food Walk Tour, visit local restaurants, and enjoy authentic Icelandic dishes.

With over 13,000 five-star reviews, this tour takes you restaurant-hopping to sample delicious dishes around the city.

Just a heads-up… be sure to show up hungry!

Use my special code: ICEVIEW to get a 10% discount on the Reykjavík Food Walk Tour!

8. Ginger Restaurant

Sometimes, you just want a quick, tasty bite before heading out on your next adventure, right?

Well, this place has healthy dishes ready in just 8 – 10 minutes.

The menu is packed with creative flavor combos with their soups, sandwiches, wraps, hot dishes – you name it.

(I’m already dreaming about their Falafel vegetarian dish with walnuts and sweet potatoes. How good does that sound?!)

The portions are solid, the prices are great, and everything is so flavorful.

Plus, they’ve got vegan, vegetarian, and gluten-free options, so there’s something for everyone.

What’s not to love?

Price: $
Open times: Mon-Fri 11:00-8:00 p.m // Sat and Sun: 11:30-8:00 p.m.

9. Kex Hostel Restaurant

Kex is one of the most popular places to stay in Reykjavík, not to mention one of the coolest hangout spots. When it comes to cool restaurants in Reykjavík, Kex definitely stands out!

This former biscuit factory-turned-hostel features a lively bar and a fantastic restaurant.

I’ve dropped by many times for a quick bite and have never been disappointed.

I highly recommend starting with the smoked lamb appetizer or trying the dried fish: Harðfiskur (it’s an Icelandic classic!).

For mains, you can’t go wrong with the roasted lamb or their juicy burgers.

With tasty menu items at an affordable price point, Kex earns its place as one of the best budget restaurants in Reykjavík.

*Please note: Kex Hostel Restaurant is closed for renovations as of December 2024, but hopefully, it’ll be reopening soon (though the exact date is still unclear).

Price: $-$$
Open times: 12:00-11:00 p.m.
Note: The lunch menu is served until 5:00 p.m.

10. Cheap Eats in Reykjavík at Bæjarins Beztu (Baejarins Beztu)

Reykjavík famous hot dog, great cheap eats in Reykjavík

This wouldn’t be a proper ‘best budget restaurants in Reykjavík’ recommendation list without mentioning the most famous hot dog stand in the country.

Icelanders love their hot dogs, and Bæjarins Beztu is one of the most popular stops in Reykjavík for locals and tourists alike.

Even Bill Clinton enjoyed a hot dog here, and his photo is still on the wall today.

Make sure to order one with “everything on it” which includes: raw onions, crispy fried onions, ketchup, special Icelandic hot dog mustard, and remoulade.

Whenever I’m looking for cheap food in Reykjavík, a good ol’ Icelandic hot dog is always my go-to.

Now, you might be thinking, “Ew, hotdogs are not my thing,” especially if you’re trying to eat healthy and avoid processed food.

But these hot dogs aren’t like the regular ones you might be used to back home.

They’re made with real meat.

Trust me, the hot dogs in Iceland are delicious!

Price: $
Open times: Sun-Wed 9:00 a.m.-1:00 a.m. // Thursdays 9:00 a.m.-2:00 a.m. // Fri and Sat 9:00 a.m.-6:00 a.m.

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