Iceland is known for its breathtaking landscapes and unforgettable adventures, but it’s also known for being an expensive destination. Luckily, there are a few cheap eats in Iceland that allow you to experience local flavor on a budget.
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Cheap Eats in Iceland: The Famous Icelandic Hot Dog
Iceland was my first solo trip and I was on a pretty tight budget. Bæjarins Beztu Pylsur was my refuge, providing me with delicious hot dogs at a very affordable price. I definitely ate here more than I’d like to admit.
As a Chicagoan, I have pretty high hot dog standards and I can definitely say these exceeded my expectations. They’re made with a mix of beef, lamb, and pork, so they offer a unique flavor.
Icelandic Street Food: Affordable Soup in a Bread Bowl
One of my favorite budget-friendly meals in Reykjavík was Icelandic Street Food. They serve affordable bread bowls filled with homemade soup, making it the perfect comfort meal after a day of exploring.
I tried both the lamb soup and the shellfish soup, and while both were delicious, the lamb soup was my favorite. It’s filled with tender lamb, potatoes, carrots, and other root vegetables. The shellfish soup is made with scallops and shrimp and is a great option if you prefer seafood.

Budget-Friendly Cheap Eats in Iceland: Grocery Stores
One of the easiest ways to stick to a budget in Iceland is by shopping at grocery stores like Bónus. You’ll find locations throughout the country where you can pick up snacks or easy meals to enjoy at your accommodation.
Must-Have Essentials for Iceland
- North Face Arctic Parka – this kept me so warm during my trip. If you’re looking for an affordable option, try this one.
- Warm Columbia Boots for Winter. Here’s another option that’s more affordable.
- Columbia Rain Jacket for warmer months. Try this one for a more budget-friendly option.
