Where to Eat in Reykjavík: A Neighbourhood Guide for Hotel Bookers

From harbour-hotdog stands to tasting menus, here is where to eat in Reykjavík by area — plus which spots deserve your króna and which to skip.

Downtown 101: Laugavegur, Skólavörðustígur and the Old Harbour

Most visitors base themselves on or near Laugavegur, the main shopping street, and Skólavörðustígur, the steep lane leading to Hallgrímskirkja. That means the highest concentration of restaurants is within a ten-minute walk of your hotel. Expect lunch mains around 2,200–3,500 ISK and dinner mains 3,500–6,000 ISK. For a quick, reliable lunch, the fish-and-chips at Reykjavík Fish Restaurant on Tryggvagata, near the old harbour, has been a local favourite for years and sits close to the Kolaportið flea market, open weekends.

The harbour area along Geirsgata and Ægisgata houses several seafood-focused places. A classic is the sea Baron (Sægreifinn) at Geirsgata 8, known for its lobster soup and grilled skewers. It is casual, communal seating, and good value by Icelandic standards. Book ahead for dinner in summer (June–August), when tables fill by 18:30. If you are staying at a hotel on Hverfisgata or Þingholtsstræti, you can walk to all of this in under 15 minutes; taxis from the same area to the old harbour cost roughly 1,500–2,500 ISK.

One warning: the strip of restaurants right on Austurvöllur square facing the parliament building trades on location. Food is fine but rarely memorable, and prices are 20–30% above comparable places one street back. Walk two minutes to Ingólfsstræti or Klapparstígur instead.

Beyond the Centre: Grandi, Hverfisgata and Vesturbær

The old harbour's Grandi district, a 10–12 minute walk from downtown, has become Reykjavík's food hub. Here you will find the Marshall restaurant at Grandagarður 6, a smart-casual spot with harbour views and a menu built around Icelandic lamb and fish; dinner mains run about 4,500–6,500 ISK. Next door, the Valdís ice cream shop at Grandagarður 21 draws queues on sunny days, and the nearby Skúli Craft Bar and Mikkeller & Friends are good for a pre-dinner drink. The area is also home to the Reykjavík Maritime Museum, so you can combine a visit with lunch.

If you are staying in the Hótel Borg or Apótek area, Hverfisgata is your friend. The Dill restaurant at Laugavegur 59 (entrance on Hverfisgata) holds a Michelin star and serves a set tasting menu; expect 12,000–15,000 ISK per person without drinks. It is not for every night, but worth one splurge. For something more everyday, the nearby Gló at Laugavegur 20b does excellent vegan and raw bowls, and the Laundromat Café at Austurstræti 9 is a reliable all-day breakfast spot.

In Vesturbær, the Vesturbæjarlaug swimming pool and the nearby Kaffi Vest at Hringbraut 81 are local institutions. This is where you go if you want to eat with Reykjavík residents rather than tourists. The drive from downtown takes 8–10 minutes; by bus, take the number 11 or 15 from Hlemmur square.

Budget Bites and the Hot Dog Stand

The most famous cheap eat in Iceland is Bæjarins Beztu Pylsur, a hot dog stand on Tryggvagata near the harbour. A hot dog with everything (remoulade, ketchup, mustard, raw and fried onion) costs around 600–800 ISK. It has been operating since 1937 and is a genuine local habit, not a tourist trap. Go before 11:30 or after 20:00 to avoid the longest queues. For a sit-down budget meal, the Kebab House at Austurstræti 11 does large portions for 1,800–2,500 ISK, and the Noodle Station at Skólavörðustígur 21a is a reliable choice for a quick bowl of noodles.

Breakfast at your hotel is often the best value, but if you are self-catering, the Bónus supermarket at Skútuvogur 1 in the east or the Krónan at Frakkastígur 2 in the centre will save you a lot. A loaf of bread, cheese, skyr and coffee will cost roughly 1,500–2,000 ISK total — enough for two breakfasts. Note that alcohol is only sold in state-run Vínbúðin shops, with limited hours; a beer at a bar is 1,200–1,800 ISK, so pre-drinking at your hotel is a common local strategy.

For a special-occasion dinner, the Grillmarkaðurinn at Lækjargata 2a is a long-standing favourite for Icelandic lamb and fish, mains about 5,500–8,000 ISK. Reserve at least a week ahead in summer. If you want to try fermented shark or lamb testicles, the Café Loki opposite Hallgrímskirkja is a gentle introduction; otherwise, skip the novelty plates and spend your money on fresh seafood.

Which One Would I Book?

If I were booking a hotel for a food-focused trip, I would choose a property on or just off Laugavegur, between the junctions with Klapparstígur and Barónsstígur. From there, you can walk to Dill, Gló, the Laundromat Café, Bæjarins Beztu and the harbour in under 20 minutes, and you are five minutes from the Hlemmur bus hub for trips further out. That location also puts you close to the BSÍ bus terminal for airport transfers.

For a quieter stay with easy parking, the Grandi area has several newer hotels and is a 15-minute walk from downtown. It suits travellers who want to be near the food scene but away from bar noise. Avoid booking a hotel on the stretch of Laugavegur closest to the main bars (around the intersection with Vatnsstígur) if you are a light sleeper on weekends — it can be lively until 03:00. In winter (October–April), the northern lights are a bonus, but few restaurants outside downtown stay open late; check closing times before you go.

Questions, answered

Do I need to book restaurants in Reykjavík in advance?

For dinner at popular places like Dill, Grillmarkaðurinn or Sægreifinn in summer (June–August), yes — reserve at least a week ahead. Outside peak season, a day or two is usually enough. Lunch spots rarely need booking.

What is a typical meal price in Reykjavík?

A casual lunch main is 2,200–3,500 ISK; dinner mains 3,500–6,000 ISK. A hot dog is 600–800 ISK, and a tasting menu at a starred restaurant is 12,000–15,000 ISK. Alcohol is extra and expensive.

Which neighbourhood should I stay in for food?

Stay on or near Laugavegur between Klapparstígur and Barónsstígur for the best walkable access to restaurants, or in Grandi for a quieter base near the harbour food scene, 15 minutes from downtown.

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