If you’re planning a trip to Iceland, one of the biggest questions you might have is:
Is food expensive in Iceland?
The honest answer? Yes, it can be.
But that doesn’t mean you can’t eat well on a budget.
From Icelandic hot dogs in Reykjavík to American fast food chains, gas station meals, and supermarkets across the country, there are plenty of ways to find cheap food in Iceland. Here’s everything you need to know about fast food options and how to save money on your Iceland road trip.
Is food expensive in Iceland?
Food in Iceland is generally more expensive than in most European countries and North America.
Why?
- Many ingredients are imported
- Operating costs are high
- Inflation impacts pricing
- Iceland is geographically isolated
Average Food Prices in Iceland (2026)
Here are realistic price ranges:
Restaurants
- Casual restaurants main course: $22-33
- Mid-range restaurant (2-3 courses): $45-75
- Fine dining: $75-130
Fast Food Prices
- Expect to pay around $16-22 for a typical fast food meal.
Gas Station Food
Gas stations are popular budget stops during an Iceland road trip.
- Soup or stew $13-18
- Burger combo $16-22
Still cheaper than most sit-down restaurants, especially outside Reykjavík.
Grocery Store Prices
- Skyr $1.5-3
- Bread $4-6
- Ready-made meal $9-15
- Related reading: 6 Best Cheap Eats in Iceland: grab a bite for $15 or less
Are There Fast food Restaurants in Iceland?
Yes.
While there is no McDonald’s in Iceland, there is now a Starbucks.
Starbucks operates in the Reykjavík area.
McDonald’s closed in 2009 and has not returned.
Most international fast food chains are found in:
American Fast Food Chains in Iceland
You’ll find several familiar names:
- Domino’s Pizza
- Subway
- KFC
- Pizza Hut
These are usually located in larger towns and shopping areas.
Icelandic Fast Food Chains
If you want something more local:
- Aktu Taktu
- Metro
- Hamborgarabúllan
- Serrano
- Local
These Icelandic burger chains offer classic fast food with locally sourced ingredients.
Icelandic Hot Dogs: The Must-Try Cheap Food
The most famous hot dog stand in Iceland is:
Bæjarins Beztu Pylsur
Icelandic hot dogs are made from lamb, pork, and beef and typically cost $5-8.
They are one of the cheapest traditional foods in Iceland and can be found across the country.
Gas Station Food in Iceland
Don’t underestimate gas stations.
Chains like:
Orkan & N1 offer:
- Lamb soup
- Fish and chips
- Burgers
- Sandwiches
- Coffee
If you’re doing a Ring Road self-drive trip, gas stations are often your most practical food stops.
How to Eat Cheap in Iceland
Even though Iceland is expensive, here are proven ways to reduce your food budget.
1. Shop at Discount Supermarkets
Look for: Bónus and Krónan
Buying groceries instead of eating out daily can cut your food costs in half.
2. Bring Snacks From Home
Granola bars, oatmeal, and packaged snacks help during long driving days.
3. Plan Meals Around Your Self-Drive Route
Renting a car in Iceland gives you flexibility to:
- Shop at supermarkets
- Avoid tourist-heavy restaurants
- Choose cheaper towns
- Control your daily budget
How a Rental Car Helps You Travel Iceland on a Budget
While you can walk to a supermarket in central Reykjavík, a rental car becomes valuable once you start exploring beyond the capital.
With your own car, you can:
- Reach larger supermarkets outside tourist-heavy areas where prices can be slightly better
- Stop at discount stores along your Ring Road route instead of eating at the nearest restaurant
- Avoid being limited to expensive hotel-area dining options
- Stock up once and store food for multiple days of your road trip
- Choose where and when to stop for meals instead of relying on tour schedules
It’s not just about reaching a supermarket. It’s about having full control over your daily budget while traveling around Iceland.
FAQ: Food and Fast Food in Iceland
- Is there McDonald’s in Iceland?
No, McDonald’s closed in 2009 and has not reopened.
- Is there Starbucks in Iceland?
Yes. Starbucks operates in the Reykjavík area.
- How much does a meal cost in Iceland?
A casual restaurant meal costs around 3,000-4,500 ISK. Fast Food meals cost around 2,000-3,000 ISK.
- What is the cheapest food in Iceland?
Icelandic hot dogs and supermarket meals are typically the cheapest options.
- Is grocery shopping cheaper in Iceland?
Yes. Shopping at Bónus or Krónan is much cheaper than eating at restaurants daily.
- Can I travel Iceland on a food budget?
Yes. Planning ahead, grocery shopping, eating fast food, and renting an cheap car make budget travel Iceland possible.
Final Thoughts
Food in Iceland is expensive, but it’s manageable with planning.
Fast Food chains, Icelandic hot dogs, gas station meals, and discount supermarkets make budget travel realistic.
And if you want full flexibility to eat smart and travel affordably, renting a cheap car in Iceland with Firefly gives you control over your trip and your spending.
