Iceland isn’t a cheap destination. The lodging was expensive, the rental car was expensive (although we did not spend as much as I expected on gas), and there really isn’t a lot you can do about those costs. One area of the budget that you can control a little bit is food. I knew before we went that food would be pricey, and I kept reading horror stories online about people spending $100 on a couple of sandwiches at lunch. I went into the trip hoping to eat one meal out per day and the rest of our food would come from the grocery store. We packed a soft sided cooler, but had no ice packs or refrigeration plans. We have allergies to nuts, bananas, lentils, and chickpeas. How did we do, and what did we find? Let’s start with the numbers.
For two people, we spent a rounded up total of $1100 on food, snacks, and alcohol over the course of twelve days in October 2024. While it looks like a lot, it was only about $46 per person, per day. On most days, we ate out once or even twice. We did opt for two very fancy dinners during our trip, and we spent some of that $1100 on souvenirs from the grocery store. Honestly, every meal we had was delicious, and we never felt hungry going to bed. We also brought food home for friends and family to try.
The first food budget tip I have is to choose lodging that offers free breakfasts. Eight of the eleven places we stayed gave us a free breakfast buffet. The breakfast buffets included skyr parfaits, waffle bars, eggs, fish, meats, cheeses, vegetables, fruits, porridge with a toppings bar, cereal, breads and pastries, coffee, tea, water…it was ample, filling, and so satisfying. It was a great, and free, way to start the day with a full stomach.
My second food budget tip is to skip the touristy restaurants, and try the places the locals frequent. I scoured the social media travel groups looking for places to eat. We had lunch in ReykjavÍk at Vitabar for around $30 USD for both of us! We enjoyed some very tasty burgers while listening to the locals chat. It was a very immersive experience in which we learned we eat our burgers with our hands like barbarians, not a knife and fork like civilized Icelandic people.
We also went to Pakkhús in Höfn for our anniversary. This meal was one of our fancy dinners, and it was worth every penny we spent. I thought I hated lamb, but since lamb is one of the things you’re supposed to eat in Iceland, I ordered it for dinner this night. It was probably the most melt in my mouth scrumptious food I have ever had in my life. Followed with a dessert of hot caramel drizzled into a chocolate orb filled with popping fruity puree and vanilla ice cream, this meal was perfection. If you’re in the area, treat yourself to a dining experience here.
Alas, not every night can be fancy, so what other options do you have in Iceland? Gas stations, for one! You can find various styles of pyslur, hot dogs, ice cream, and snacks at most manned gas stations. Bakeries were another great place to grab a coffee and a snack. We went to Sigurjónsbakari in Keflavík and got hearty sandwiches for lunch on our first day in Iceland. Rest areas and souvenir shops are other options for food and drinks, especially at the main tourist areas like Geysir and Gulfoss.
The biggest tip I have for you is to hit the grocery store for snacks, breakfasts, lunches, and souvenirs. We used Bónus stores around Iceland for our shopping. As I said earlier, we brought a soft sided cooler, but no means of refrigeration. It worked out fine, as we either stuck the cooler outside at night or left it in the car and just carried in any perishables we intended to eat. We bought grab and go sandwiches (the roast beef was my husband’s favorite, and we’ve recreated it at home so he can continue to eat them), cheese spreads, skyr, rolls and rye bread, apples, chips, drinks, butter, dried fish and lots of other options that kept us full along the road. Most days for lunch, we stopped somewhere scenic and ate our various snacks. For souvenirs, we grabbed lots of chocolate bars, chips, salts, and the remoulade, mustard, and fried onions for when the pylsur cravings hit at home. We found a Bónus store was always pretty nearby, too.
Finally, if you want to consume alcohol while in Iceland, you’ve got a few options. The cheapest option is to stop at the duty free shop at the airport before you leave. You can go to a state liquor store or Vinbúðin, but the hours are short, the prices are higher, and the selection is not as large. Another way to save money is to grab a drink during happy hour. All of the hotels we stayed in that served drinks offered a happy hour with discounts.
As far as allergens, we didn’t have issues with our meals or determining what had nuts in it. I will say that gluten free options were not always listed or were not as prevalent just from what we saw. I did see a plant based pylsur stand in Akuryeri though, and the Pylsu Vagninn in Selfoss had vegan pylsur.
Iceland has so many yummy options for food, so if you go, I hope you’ll be open to trying things you might not enjoy back home. I think the touristy places are fine, but not always as tasty as some of the places preferred by the locals. While we chose to splurge on a couple of special meals, we really could have gotten by with just food from the grocery store and some stops at the gas stations. So don’t let the food horror stories scare you. Go in armed with knowledge and a food plan, and you’ll enjoy your trip while satisfying your tummy and wallet both.