Meal cost
What locals actually eat
The famous pylsur (hot dog) at Bæjarins Beztu is ISK 750 — the same price for 80 years. It's lamb-based, sweet-and-pickled, and considered a national dish. Skip the "Icelandic hot dog" places that charge 3x; they're tourist traps. The downtown Bæjarins Beztu near the harbour is the original.
For lunch in Reykjavík, locals hit the canteens (Mokka, Café Haiti) or the daily menu at mid-range restaurants (Grillið, Sjávargrillið) for ISK 2,500–3,500 incl. drink. Avoid the Laugavegur walk-up menus with "Icelandic lamb" on a giant chalkboard — they're 2x the price for the same kitchen's regular menu.
FAQ
Is fish expensive?
Fish (cod, haddock, Arctic char) is fresh and not much more expensive than meat. The famous lobster (Humarlung) at ISK 9,000+ in tourist places is actually langoustine and marked up 3x — better eaten in Höfn where it costs half.
Best value restaurants in Reykjavík?
Try the "Icelandic Gourmet Menu" set at Grillið, Sjávargrillið, or Matarkjallarinn — ISK 7,500–10,000 for 5+ courses. The set menu is genuinely cheaper than ordering à la carte.
Coffee?
A flat white runs ISK 600–900 — expensive but quality is high. Reykjavík roasters (Reykjavik Roasters, Kaffi Vinyl) are worth the splurge.