What to Eat in Iceland's Small Towns: A Regional Guide

From fishing-village lamb soup to the tomato greenhouses of Flúðir, here is how eating well outside Reykjavík actually works.

South Iceland: Tomatoes, Lamb and Dairy Along the Ring Road

Selfoss is the practical base for the south, an hour and fifteen minutes from Reykjavík on Route 1, and its riverside restaurants lean on greenhouse produce and Icelandic lamb. Keep going fifteen minutes east and you reach Flúðir, where Friðheimar grows tomatoes under lights year-round and serves tomato soup, bread and Bloody Marys inside the greenhouse; booking a table matters most between June and August, when tour coaches fill the afternoon slots. Nearby Efstidalur, off Route 35 on the Golden Circle, makes its own ice cream from the dairy herd in the barn next door, and a stop there is a good way to break a long drive without spending an hour on lunch.

If you stay overnight rather than day-tripping from Reykjavík, the south rewards you: Vík, two and a half hours from Selfoss, has a handful of restaurants serving lamb soup and fresh-caught cod at prices that are lower than the capital's but still high by European standards, and the harbour at Höfn, a further four hours east, is the reason to eat langoustine, landed and cooked the same day in the summer months. My pick for a two-night south stay is a guesthouse near Hvolsvöllur: it splits the drive to Jökulsárlón, keeps you close to the Golden Circle, and lets you eat breakfast where the owners do.

The West and Westfjords: Fish, Skyr and a Short Season

Snæfellsnes peninsula does not have a big town on it, which is the point. Stykkishólmur, about two hours from Reykjavík on Route 54, is the largest settlement and serves excellent fish soup and plokkfiskur, a mashed haddock and potato dish with rye bread and butter that turns up on most country menus. Outside the June-to-August window, several kitchens reduce their hours, so check ahead if you are travelling in May or September; a few places close entirely between October and April. The drive to the peninsula's tip at Hellnar takes about an hour from Stykkishólmur and is worth it for a coffee stop alone.

The Westfjords are a different calculation. Ísafjörður, reached by a five-and-a-half hour drive from Reykjavík or a short flight from the capital, has a strong restaurant scene for its size, built on cod and Arctic char, and the town's old timber houses make a pleasant evening walk. The catch is the season: many Westfjords kitchens run only from June to mid-September, and the mountain roads, including Route 61, can be slow in shoulder months. I would book a two-night stay in Ísafjörður rather than trying to cover the region from a single base, because the distances between villages leave no room for a leisurely dinner.

The North and East: Akureyri, Mývatn and the Long Table

Akureyri, four and a half hours from Reykjavík on Route 1 or a 45-minute flight, is the second city and eats like one: bakeries, a good fish restaurant on the waterfront, and cafés around Hafnarstræti that serve skyr with berries and cream. The drive east to Mývatn takes about an hour and a half, and around the lake you will find simple kitchens serving lamb, trout and the dark rye bread baked in the geothermal ground at Hveravellir-style vents near Reykjahlið. Note that Mývatn's midge season peaks in July and August, which bothers some diners on outdoor terraces more than others.

East of Mývatn, Egilsstaðir is the natural overnight stop on the Ring Road, about two hours further on, and its restaurants serve local lamb and fish without much fanfare. The Eastfjords are the quietest part of the trail: between Egilsstaðir and Höfn are four to five hours of driving with few services, so plan lunch in a village such as Djúpivogur rather than hoping for something on the road. In the north, my booking advice is simple: a hotel in central Akureyri for two nights, then one night near Mývatn, rather than a single stop somewhere in between.

What to Skip, and How to Eat Well on a Budget

Skip the impulse to eat every meal out. Icelandic restaurant prices are high, and a bowl of soup in a small-town café can cost as much as a main course elsewhere in Europe. Instead, buy at the local supermarkets — Bónus is the cheapest chain, found in most towns — and build breakfast and lunch from skyr, rye bread, cheese, smoked salmon and fruit. Hot dogs at petrol stations are a genuine local habit and a cheap hot meal on a long drive, and most towns have at least one bakery worth a morning stop.

Do not skip the swimming pools. Almost every town of any size has a geothermal pool, and the small café attached is often where locals eat, which tells you something. Book accommodation with breakfast included where you can, especially in the Westfjords and the East, where opening hours are shorter. For a first trip, I would put the budget into three dinners — one in Selfoss, one in Akureyri, one in Ísafjörður — and keep the rest simple. Travelling in June or September rather than July gets you the same food with fewer crowds.

Questions, answered

Do I need to book restaurants in advance in small Icelandic towns?

In summer, yes for anywhere well known, including the Flúðir greenhouse restaurant and popular spots in Vík and Ísafjörður. Book a few days ahead. Outside June to August, call first: many country kitchens cut hours or close entirely in winter.

Is it possible to eat well without spending a lot in rural Iceland?

Yes, by using Bónus supermarkets for breakfast and lunch, and eating one cooked meal a day. Petrol-station hot dogs and bakery stops are cheap and normal. Expect restaurant mains to be expensive everywhere outside the capital too.

What local foods should I try in Iceland's smaller towns?

Lamb soup, plokkfiskur, fresh cod and langoustine on the coast, skyr with berries, and rye bread baked in geothermal ground near Mývatn. Dairy ice cream from farm shops on the Golden Circle is a good stop, especially with children.

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