8. Shalimar – Pakistani Cuisine
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Best for: Authentic Pakistani flavors and halal dining
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Average price level: Lunch menu items typically range from 2,600 to 3,000 ISK (19–22 USD)
Since opening its doors in 2001, Shalimar has been steadily capturing the hearts—and palates—of Reykjavik residents and visitors alike with its genuine Pakistani fare. Nestled in the heart of downtown, this restaurant offers a warm and inviting ambiance, serving up beloved classics such as chicken tikka masala, lamb saagwala, biryani, and tandoori naan, which arrives piping hot to your table.
The true artistry here lies in Shalimar’s homemade spice blends, crafting deep, layered flavors that elevate each dish and remind diners why good curry is always worth a quest. The lunch crowd has uncovered the appeal of the set menus and combo plates, offering fantastic value, with generous portions that promise satisfaction lasting well into the afternoon.
As one of the best budget-friendly lunch spots in Reykjavik, Shalimar showcases authentic Pakistani flavors and halal options, serving meals that are sure to hit the mark after hours of exploring the city.
Shalimar – Customer Ratings
Shalimar – Opening Hours
Shalimar – Address
7. Grandi Mathöll
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Best for: A diverse array of street food
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Average price level: Around 2,500 ISK (18 USD)
Grandi Mathöll has artfully reimagined an old fish factory by the harbor into a vibrant food hall since its debut in 2017. This once-industrial space has now become a culinary haven, where hungry diners can choose from an impressive array of stalls each offering handmade meals that won’t break the bank.
As one of Reykjavik’s premier food halls, Grandi Mathöll offers a cornucopia of options, from traditional Icelandic lamb and fresh seafood to Italian pastas, burgers, and tacos. Be sure to seek out the Indonesian and Indian stalls for generous portions packed with bold flavors that truly deliver on taste.
The fish and chips here have garnered rave reviews from locals, boasting a perfectly crispy golden exterior paired with the freshest catch — definitely worth the trek to the harbor. As one of the best affordable dining choices in Reykjavik, Grandi Mathöll stands out as a go-to destination for quality fare at reasonable prices.
Grandi Mathöll – Customer Ratings
Grandi Mathöll – Opening Hours
Grandi Mathöll – Address
6. Krua Thai
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Best for: Pad Thai and flavorful Thai curries
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Average price level: Approximately 3,400 ISK (24 USD)
Situated near Hallgrimskirkja Church, Krua Thai draws in diners with the intoxicating aromas of sizzling noodles and rich curries. The menu is brimming with favorites like pad Thai, green curry, and fried rice, served in hearty portions that invite sharing or guarantee to keep you full for the day.
A standout during those chilly Reykjavik evenings is the tom yum soup, striking the perfect balance of spice and comfort.
For those counting pennies, the lunchtime specials offer hearty meals that fit neatly into the category of affordable dining in Reykjavik. Quick service and convenient takeaway options make Krua Thai a perfect choice when you’re pressed for time but still crave something flavorful.
Krua Thai – Customer Ratings
Krua Thai – Opening Hours
Skolavordustigur Branch:
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Monday – Friday: 11:30 AM – 9:30 PM
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Saturday: 12:00 PM – 9:30 PM
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Sunday: 5:00 PM – 9:30 PM
Krua Thai – Address
5. Arabian Taste
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Best for: Shawarma and kebabs
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Average price level: Wraps start from ~2,000 ISK; plates range from ~2,700 to ~2,900 ISK
Emerging in 2021, Arabian Taste quickly established a solid reputation for serving some of the city’s finest Middle Eastern cuisine at prices that won’t pinch your wallet.
Located on Laugavegur, this family-run establishment specializes in Syrian classics such as chicken and lamb shawarma, kebabs, and Arabic plates, each dish enriched with fresh ingredients and robust spices that make it a memorable dining experience.
Readers’ reviews frequently commend Arabian Taste as a top contender among Reykjavik’s dining scene, celebrating the warm service, generous portions, and consistently high quality.
Popular choices include the Chicken Doner, the Arabian Mix, and shawarma platters served with rice and salad. Diners rave about the crispy fries and fresh hummus, with many noting the exceptional value for money, some claiming it’s the best Arabic food they’ve ever enjoyed.
Two other notable mentions are Mandi and Lamb Street Food, both beloved spots known for their kebabs. Mandi has become a late-night favorite downtown for its budget-friendly shawarma, falafel, and hummus plates, while Lamb Street Food offers a unique Icelandic twist, marrying local lamb with flatbreads, skyr, and Middle Eastern spices.
Arabian Taste – Customer Ratings
Arabian Taste – Opening Hours
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Monday to Thursday: 10:00 AM – 11:00 PM
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Friday: 10:00 AM – 2:00 AM
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Saturday: 11:00 AM – 2:00 AM
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Sunday: 11:00 AM – 11:00 PM
Arabian Taste – Address
4. Icelandic Street Food
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Best for: Bottomless lamb and tomato soup refills
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Average price level: About 3,000 ISK (21 USD) for refillable bread-bowl soup
A steaming bowl of lamb soup is a comforting choice on a chilly Reykjavik day, and Icelandic Street Food delivers just that.
The menu is straightforward yet comforting, offering an assortment of options including the Fisherman’s Favorite fish stew, a hearty spicy tomato soup, and, most notably, an unlimited-refill meat and shellfish soup, all paired with fresh bread.
The complementary waffles with jam that accompany each meal are a delightful finishing touch that diners appreciate.
Icelandic Street Food – Customer Ratings
Icelandic Street Food – Opening Hours
Icelandic Street Food – Address
3. IÐNÓ
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Best for: Coffee and lamb soup
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Average price level: Approximately 2,800 ISK (20 USD)
IÐNÓ, housed in a building dating back to 1897, serves up coffee in a space rich with history. This establishment has transitioned from theater and meeting hall to café, silently witnessing the evolution of Reykjavik.
Located adjacent to Tjornin Pond, the setting is picturesque, encouraging diners to observe the ducks more often than intended.
The lamb soup accompanied by bread is a beloved staple, especially on chilly days when hearty food is a must. The tempting cakes and robust coffee offer additional reasons to linger.
With its surprisingly reasonable prices compared to other downtown cafés, IÐNÓ invites you to unwind and savor your time. It also serves as a wonderful starting point for an enjoyable night out, with delicious food and drinks before heading to some of Reykjavik’s top bars.
IÐNÓ – Customer Ratings
IÐNÓ – Opening Hours
IÐNÓ – Address
2. Hamborgarabullan (Tommi’s Burger Joint)
Tommi’s Burger Joint, an iconic hamburger chain in Iceland, has been serving scrumptious burgers since its debut in 1981. Initially, Tommi aimed to sell around 250 hamburgers over the opening weekend, a target he surpassed by selling an astounding 1,000 on day one. It’s safe to say, it captured the affection of Icelanders, establishing itself as a top hamburger destination, a reputation that has only grown.
In this relaxed atmosphere, adorned with concert posters, vinyl records, and children’s drawings, Tommi’s is the perfect spot for simple yet mouthwatering burgers. The “Offer of the Century” includes a classic Tommi burger, fries, and a soda, while the beef steakburger provides a splendid upgrade. With locations now spanning Iceland, the UK, Germany, and Denmark, Tommi’s has achieved international acclaim, but the iconic Geirsgata location remains a fan favorite.
If you’re looking for other options, 2Guys specializes in smashburgers set in a casual bar atmosphere at mid-range prices. For quick and budget-friendly meals, Metro presents a homegrown alternative akin to McDonald’s, providing the quintessential fast-food experience in Iceland.
Hamborgarabullan (Tommi’s Burger Joint) – Customer Ratings
Hamborgarabullan (Tommi’s Burger Joint) – Opening Hours
Hamborgarabullan (Tommi’s Burger Joint) – Address
1. Baejarins Beztu Pylsur
Baejarins Beztu Pylsur is the quintessential stop for budget-friendly eats and arguably the best hot dogs in Iceland. This renowned Reykjavik stand has been serving iconic Icelandic hot dogs since 1937.
Crafted from a distinctive blend of lamb, pork, and beef, these hot dogs have become a culinary rite of passage for both visitors and locals. What truly elevates them are the toppings.
Order “one with everything” (“eina með öllu”) to experience a delightful ensemble of sweet brown mustard, remoulade, ketchup, raw onions, and crispy fried onions. Joining the ranks of notable patrons from Bill Clinton to Kim Kardashian, indulging in this Icelandic classic is a must. For those who prefer to avoid the queue, delivery options are now available throughout Reykjavik via popular apps.
For an even thriftier option, IKEA’s Bistro near Reykjavik offers very low-priced hot dogs, including a vegan alternative. Additionally, consider checking out Víkinga Pylsur by Hallgrimskirkja, which puts a creative spin on the hot dog experience with pulled meats and solid vegan choices. For a cozy, nostalgic bite, visit Hagavagninn by Vesturbaejarlaug Pool for straightforward burgers and a bean patty option.
Bæjarins Beztu Pylsur – Customer Ratings
Bæjarins Beztu Pylsur – Opening Hours
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Sunday – Wednesday: 9:00 AM – 1:00 AM
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Thursday: 9:00 AM – 2:00 AM
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Friday – Saturday: 9:00 AM – 6:00 AM
Bæjarins Beztu Pylsur – Address
FAQs About Affordable Restaurants in Reykjavik
Here are some frequently asked questions regarding affordable dining in Reykjavik.
What are the best cheap restaurants in Reykjavik?
The best budget-friendly establishments in Reykjavik are conveniently located in the city center. Notable mentions include Icelandic Street Food, offering unlimited soup refills; Tommi’s Burger Joint for classic burgers; and Bæjarins Beztu Pylsur, renowned for its famous Icelandic hot dog. These affordable eateries enjoy popularity among both travelers and locals alike.
What is the average meal price in Reykjavik?
A casual dining experience in Reykjavik typically ranges from 18 to 32 USD, while a three-course dinner at a mid-range restaurant can set you back anywhere from 43 to 71 USD per person.
Is it easy to find cheap food in Reykjavik?
Indeed. Although Iceland is noted for its high prices, Reykjavik offers numerous budget-friendly food options, from hot dog stands to casual burger joints and multi-cuisine food halls.
Is it cheap to eat out in Iceland?
Dining out in Iceland can be pricey; however, many budget-conscious choices such as fast-casual eateries, street food vendors, and burger joints make it possible to enjoy good-quality meals for less.
As a customer of Guide to Iceland, don’t overlook your exclusive VIP Club discounts available at restaurants, cafes, bars, and more.
What is the cheapest food in Reykjavik?
The most economical food option in Reykjavik is often the famed hot dog from Bæjarins Beztu Pylsur, priced around 800–850 ISK. Alternatively, you can find low-cost hot dogs at IKEA’s food court, popular for budget dining. Additional affordable options include pastries from local bakeries, shawarma from Arabian Taste, and flavorful Thai dishes at Krua Thai.
What are the best places to eat in Reykjavik for lunch?
When it comes to lunch options in Reykjavik, consider Caruso for Italian delights, Grandi Mathöll for an eclectic food hall experience, and Pitan for stuffed pita creations.
Where to go for dinner in Reykjavik?
For a casual and budget-friendly dinner, head to Icelandic Street Food for hearty local fare, or try 2Guys for smashburgers. If an upscale experience is desired, look to Caruso for a cozy Italian ambience or IÐNÓ for a dining experience steeped in history.
What are the best casual restaurants in Reykjavik?
Among the best casual dining experiences in Reykjavik are Hamborgarabulla Tomasar for delightful smashburgers (Tommi’s Burger Joint) and Grandi Mathöll for a myriad of international food stalls. Perfect for groups or laid-back meals, these spots embody the relaxed dining vibe Reykjavik is known for.
Are there affordable vegetarian and vegan restaurants in Reykjavik?
Certainly. Grandi Mathöll features stalls offering vegan and vegetarian dishes, IKEA serves up vegan Swedish meatballs, and Víkinga Pylsur near Hallgrimskirkja presents a plant-based hot dog. For further options, refer to our comprehensive vegan and vegetarian guide for Reykjavik.
What food is Reykjavik known for?
Reykjavik is celebrated for its tender Icelandic lamb, fresh seafood, and iconic traditional dishes like fermented shark and dried fish.
Where To Find the Best Cheap Eats in Reykjavik
Navigating the budget dining scene in Reykjavik can be notably daunting, particularly given the city’s reputation for steep prices. However, a wealth of delightful options exists to enjoy on a budget. Refer to the map above for all the locations listed.
Reykjavik boasts a diverse culinary landscape, ranging from traditional Icelandic dishes to vibrant international flavors. Whether you’re in the mood for a quick bite during your adventures or seeking a cozy sit-down meal, these affordable establishments ensure you can enjoy mouthwatering food without overspending.
The map can also assist you in selecting from the myriad of hotels and accommodations in Reykjavik. Choose one that’s within a short stroll of these budget eateries, allowing for easy access to delicious meals after a long day of exploration. This is especially convenient after day trips from Reykjavik, when the desire for something satisfying and hassle-free grows.
Have you experienced any of these affordable dining gems in Reykjavik? Is there a favorite budget-friendly spot we might have overlooked? We’d love to hear your recommendations and stories in the comments below!
