Customers queuing at the red Bæjarins Beztu Pylsur hot dog kiosk in Reykjavik

Food and drink

Where to eat in Reykjavik: Icelandic dishes, Kaffi Loki and the food halls

Where to eat in Reykjavik: Bæjarins Beztu hot dogs, lamb soup, plokkfiskur, fermented shark, craft seafood, and food halls at Hlemmur, Pósthús, and Grandi.

Photo: Jóhann Heiðar Árnason · CC BY-SA 3.0
In this guide

💡 The Short Version: Start with a lamb hot dog from Bæjarins Beztu Pylsur (open since 1937). Try home-style Icelandic dishes such as lamb soup (kjötsúpa) and fish stew (plokkfiskur) at Kaffi Loki facing Hallgrímskirkja. For flexible communal dining without advance bookings, explore the capital’s lively food halls: Hlemmur Mathöll, Pósthús Mathöll, and Grandi Mathöll. Or book a tour: dive into local culinary history with six tasting stops by booking GetYourGuide’s Reykjavik Guided Foodie Walking Tourad.

Icelandic culinary culture was historically shaped by the harsh realities of sub-arctic isolation. With short growing seasons and long freezing winters, early Norse settlers relied on wind-drying, lactic acid fermentation, whey pickling, and heavy salting to preserve meat and fish. Today, contemporary Icelandic chefs draw on these preservation techniques to highlight pure natural ingredients: wild Atlantic cod, langoustines pulled from icy coastal waters, and free-roaming mountain lamb reared on sub-alpine thyme and heather.

Roasted mountain lamb Roasted mountain lamb. Photo: moohaha, Wikimedia Commons, CC BY 2.0.

Signature Icelandic dishes and where to try them

Dish nameIcelandic termKey ingredients & preparationWhere to sample
Icelandic Hot DogPylsa / PulsaFree-range lamb, pork, and beef sausage in a steamed bunBæjarins Beztu Pylsur (Tryggvagata)
Traditional Meat SoupKjötsúpaSlow-simmered lamb shoulder, rutabaga, potatoes, carrots, and wild herbsKaffi Loki, Fjárhúsið (Hlemmur Mathöll)
Gratinated Fish StewPlokkfiskurFlaked Atlantic haddock or cod, bechamel, mashed potatoes, melted cheeseKaffi Loki, Þrír Frakkar, Messinn
Geothermal Rye BreadRúgbrauð / HverabrauðDark, dense rye bread baked in pots buried in boiling volcanic earthLaugarvatn Fontana, Café Loki
Fermented Shark & BrennivínHákarl & BrennivínFermented Greenland shark cubes paired with caraway-infused schnappsKaffi Loki, Íslenski Barinn
Whole Roasted LangoustinesHumarWild Icelandic sea langoustines broiled with garlic, parsley, and sea saltSægreifinn, Sjávargrillið
Skyr DessertSkyrCultured high-protein dairy curd whipped with cream and wild bilberry compoteTraditional bistros and bakeries across 101

The street food: Bæjarins Beztu Pylsur

Bæjarins Beztu Pylsur (“The Town’s Best Hot Dogs”) has sold hot dogs from a red kiosk near the Old Harbour on Tryggvagata since 1937.

What sets the Icelandic pylsa apart from American or German frankfurters is the meat blend: free-range Icelandic lamb makes up the majority of the sausage, blended with pork and beef, with a firm snap to the casing.

The ordering ritual: Ein með öllu

When approaching the counter window, order your hot dog ein með öllu (pronounced ay-n meth uth-lu, meaning “one with everything”). The sausage is placed into a steamed bun and topped with five elements:

  1. Pylsusinnep: A sweet, brown roasted-malt mustard unique to Iceland.
  2. Remúlaði: A rich mayonnaise-based relish blended with capers, herbs, and pickles.
  3. Steiktur Laukur: Crisp fried onions placed along the base of the bun beneath the sausage.
  4. Hráur Laukur: Finely minced raw white onions.
  5. Tómatsósa: Sweet Icelandic tomato ketchup.

Expect a queue on weekend evenings.

Garlic-roasted langoustines Garlic-roasted langoustines. Photo: moohaha, Wikimedia Commons, CC BY 2.0.

Home cooking and heritage bistros

Kaffi Loki (Lokastígur 28, opposite Hallgrímskirkja)

Kaffi Loki sits across the plaza from Hallgrímskirkja and serves home-style cooking (heimilismatur).

  • The Loki Plate: two slices of dense rye bread topped with warm plokkfiskur and smoked Arctic trout, traditional flatkaka flatbread with smoked lamb (hangikjöt), dried fish (harðfiskur) with salted butter, and two cubes of fermented shark (hákarl).
  • Rye bread ice cream (Rúgbrauðsís): vanilla ice cream with caramelised rye bread crumbs and rhubarb syrup.
  • Reservations: Kaffi Loki does not take reservations; arrive outside the midday rush.

Þrír Frakkar (Baldursgata 14, 101 Reykjavik)

A seafood bistro in the Þingholt neighbourhood, run by chef Úlfar Eysteinsson’s family since 1989. Order the pan-fried cod tongues (gellur), grilled halibut or cured trout.

Messinn (Lækjargata 6b)

Messinn serves fish in the copper pans it cooks them in: Arctic char (bleikja) with butter and almonds, and plokkfiskur, with boiled potatoes and rye bread.

Butter-fried halibut with lobster sauce Butter-fried halibut with lobster sauce. Photo: moohaha, Wikimedia Commons, CC BY 2.0.

Food halls: communal dining without reservations

Food halls (mathallir) put several independent kitchens under one roof, so a group can each pick something different.

1. Hlemmur Mathöll (Laugavegur 107)

Hlemmur Mathöll opened in 2017 in Reykjavik’s former central bus terminal at the eastern end of Laugavegur.

  • Fjárhúsið: lamb soup (kjötsúpa) and lamb burgers.
  • Flatey Pizza: sourdough pizzas from a wood-fired oven.
  • Kröst: an open grill for steaks and skewers.

2. Pósthús Mathöll (Pósthússtræti 3–5)

Pósthús Mathöll is in the 1914 central post office on Pósthússtræti, beside Austurvöllur square.

  • Fuku Mama: bao buns, dumplings and noodle bowls.
  • Djúsí Sushi: sushi rolls, sashimi and poke bowls.
  • Pizza Popolare: sourdough pizzas and fresh pasta.

3. Grandi Mathöll (Grandagarður 16)

Grandi Mathöll is in a former fish-processing building in the Grandi harbour quarter, beside the fishing quays.

  • Fish and chips, smoked salmon and seafood chowder are the staples here.
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Tour options and bookings

A guided walking tour covers several tastings in one go. See also Reykjavik food tours.

Reykjavik: Guided Foodie Walking Tour with 6 Tastingsad

From 17,800 ISK · 4.9 stars from 2,144 reviews · 3 hours · 6 food stops

A walking tour of central Reykjavik with six tastings, led by a local guide. The stops include fish stew, lamb soup, cheeses, the Bæjarins Beztu hot dog and rye bread ice cream.

Reykjavik: Icelandic Food Tourad

From 17,200 ISK · 4.6 stars from 483 reviews · 3 hours · Traditional delicacies

A walk through the backstreets of 101 tasting Icelandic specialities, with stories about dried cod, fermented shark and how greenhouse farming changed Icelandic cooking.

Reykjavik: Traditional & Modern Food Tour by Localsad

From 16,300 ISK · 4.9 stars from 29 reviews · 3 hours · Small group

A small-group tour linking traditional dishes with modern Nordic cooking, with craft beer tastings.

Artisan bakeries and coffee culture

Independent roasters and bakeries dominate the coffee scene:

  • Brauð & Co (Frakkastígur 16): A bakery with a graffiti facade, known for sourdough and cinnamon rolls (kanilsnúðar).
  • Reykjavik Roasters (Kárastígur 1): A roastery and café that roasts its beans on site.
  • Sandholt (Laugavegur 36): A family bakery founded in 1920, with sourdough tartines, croissants and breakfast dishes.

Practical dining tips and etiquette

  • Tipping: service and VAT are included in menu prices, so tipping is not expected; see money in Reykjavik.
  • Water Quality: Do not buy bottled water: Icelandic tap water (kranavatn) is spring water and restaurants serve it free in carafes.
  • Alcohol: beer and wine are expensive in restaurants because of high excise duty. Many bars run afternoon happy hours; the Appy Hour app lists current deals.

To plan your meals around day trips and sightseeing, explore our guides to 3 days in Reykjavik and the complete Reykjavik travel hub.

Common questions

What is the most famous food to eat in Reykjavik?

The Icelandic hot dog (*pylsa*), made predominantly from free-range Icelandic lamb blended with pork and beef. The place to try it is Bæjarins Beztu Pylsur on Tryggvagata, open since 1937. Order it 'ein með öllu' (with everything) to get sweet mustard, remoulade, fried onions, raw onions, and ketchup.

Is dining out expensive in Reykjavik?

Yes. Due to high agricultural import costs and national value-added taxes, dining out is costly by broader European standards. Food halls (*mathallir*) are the cheaper way to eat a proper meal, with several kitchens under one roof.

Do you need to book restaurant tables in advance in Reykjavik?

Yes, particularly for Friday and Saturday dinners at celebrated seafood and modern Nordic establishments like Fiskfélagið, Fiskmarkaðurinn, and Matur og Drykkur. Casual food halls and traditional cafés such as Kaffi Loki do not accept reservations, operating on a first-come, first-served basis.

What is traditional Icelandic plokkfiskur?

Plokkfiskur is a comfort food of boiled cod or haddock flaked and folded into a rich bechamel sauce with mashed potatoes and onions, frequently topped with melted cheese and served piping hot with dense dark rye bread (rúgbrauð) and salted butter.