Hot dogs and street food in Iceland — what to eat on a budget
What is Iceland's famous hot dog and where can I get one?
The Icelandic hot dog (pylsa) from Bæjarins Beztu Pylsur stand at Reykjavík harbour costs ISK 600–700. Made from a lamb, pork, and beef blend, served in a steamed bun with mustard, ketchup, remoulade, crispy onions, and raw onion. Order it 'með öllu' (with everything). It is a genuine Icelandic institution, not a tourist gimmick.
Why the hot dog matters
Iceland is an expensive country. Restaurant meals cost ISK 3,500–7,000 per main course. A casual sandwich at a café runs ISK 1,500–2,000. In this context, the ISK 600–700 hot dog from Bæjarins Beztu Pylsur is not just a cheap snack — it is the most democratic food experience in the country, eaten by presidents and fishermen alike at the same outdoor stand on the Reykjavík harbour front.
Bill Clinton ate one here in 2004 and ordered it “with just mustard” (an objectively inferior order that Icelanders have not forgotten). Barack Obama requested one during a 2013 state visit but was apparently not accommodated at this particular stand. The sign outside now says “The Best Hot Dog in the World” which is hyperbolic but not entirely unjustified in context.
Bæjarins Beztu Pylsur — the institution
Address: Tryggvagata, near the old harbour, central Reykjavík. There are also branches at other locations in the city, but the original harbour stand is the one.
Hours: Approximately 10:00–22:30 Sunday–Thursday, until 04:30 on Friday and Saturday. Late-night operation makes it a post-bar stop for Reykjavík’s social scene.
The product: A pylsa — Icelandic hot dog — made from a blend of lamb (the dominant flavour), pork, and beef. The lamb content is what gives it a slightly richer, more distinctive flavour than a beef-only hot dog. Served in a steamed, slightly soft bun.
Ordering: Say “eina með öllu” for one hot dog with everything (with everything = mustard, ketchup, remoulade, crispy fried onions, and raw diced onion). The combination works better than it sounds — the crispy onion adds texture, the remoulade adds creaminess, and the lamb flavour comes through everything. You can customise any element. A second hot dog is common because ISK 1,200 for two is still cheaper than one beer at a Reykjavík bar.
The stand does not take bookings, does not have seating (a few standing ledges nearby), and the queue moves quickly even when long. No occasion for ambivalence — this is fast, cheap, and worth it.
Other cheap eating options in Reykjavík
Hlemmur Mathöll food hall (Laugavegar 107)
The former Hlemmur bus terminus was converted into a food hall in 2017. Currently housing eight to ten small vendors: ramen, fish tacos, burgers, raw food, ice cream, and rotating concepts. The quality is variable — some vendors are excellent, others less so. Browsing the stalls before committing is sensible.
Prices: ISK 1,800–3,500 per dish. Not truly cheap, but below mid-range restaurant pricing and casual enough for a quick lunch. Open from around 11:00; busiest at lunch on weekdays.
Café Loki (Lokastígur 28)
Across from Hallgrímskirkja, this small café serves traditional Icelandic dishes at accessible prices. Plokkfiskur (fish hash) at ISK 2,500, lamb soup at ISK 2,200, rye bread with smoked salmon at ISK 1,800. The skyrborgari (skyr burger — not a thing, but actually a skyr cake dessert) is worth trying. Tourist-oriented but honest food.
10-11 convenience stores
10-11 is the main 24-hour convenience chain in Iceland. Sandwiches, hot food (soup, hot dogs), pastries, and drinks. Not a destination, but useful for quick fuel at ISK 800–1,800. The soup in particular — lamb or fish — is consistently decent and warm on cold walking days.
Supermarket delis
Hagkaup and Krónan supermarkets have prepared food sections with sandwiches, sushi, and hot dishes at prices well below restaurant levels. A lunch from a supermarket deli runs ISK 1,200–2,200.
Street food culture outside Reykjavík
Iceland does not have a developed street food culture outside the capital. Most small towns have a single Bónus or Krónan supermarket, a grill-style fast food place (hamburgers, hot dogs, chips), and possibly a petrol station café.
N1 and Olis petrol stations: Found across the Ring Road, these are a practical reality for travellers. The attached cafés typically sell hot soup (ISK 500–800), hot dogs (ISK 350–500), pastries, and made-to-order sandwiches. The quality is functional rather than inspiring, but the soup is usually fine.
The lamb soup standard: Kjötsúpa (lamb soup with root vegetables) appears at farm shops, small cafés, and petrol station cafés across the country. It is cheap (ISK 800–1,800), filling, and genuinely representative of Icelandic home cooking. A bowl of kjötsúpa at a farm café near Þingvellir or Skógarfoss is often the best value meal of a Ring Road day.
Friðheimar geothermal tomato farm: On the Golden Circle route, Friðheimar grows tomatoes in geothermal greenhouses and serves an all-tomato-based menu. The tomato soup is ISK 3,500–4,500 — not cheap by any measure, but the novelty of eating tomatoes grown in geothermal heat in Iceland justifies the visit. Reservation required for lunch; check their booking page in advance.
Budget eating strategies across Iceland
Buy lunch, find cheap dinner: Supermarket lunches (skyr, rye bread, smoked salmon, apple juice) cost ISK 1,500–2,500. Using that money saved to afford one restaurant dinner per day is the sustainable budget balance.
Bónus and Krónan for basics: Bread, butter, sliced lamb, skyr, milk, fruit, and vegetables at Bónus are significantly cheaper than smaller shops. Look for the pink pig logo.
Geothermal bread at Laugarvatn: On the Golden Circle, the geothermal rye bread (hverabrauð) pulled from the ground at Laugarvatn Fontana, served with smoked salmon or butter, costs ISK 600–800 per portion. It is one of the most Icelandic food experiences available and is genuinely affordable.
Coffee at N1 vs. Reykjavík cafés: A black coffee at a Reykjavík café costs ISK 700–900. At an N1 petrol station it is ISK 300–400. The quality is different but not dramatically so for a functional espresso.
Frequently asked questions about Icelandic street food
How much does a hot dog cost at Bæjarins Beztu?
ISK 600–700 for one hot dog as of 2026. Prices have increased annually. A second hot dog with all toppings brings the total to ISK 1,200–1,400 — still the cheapest decent meal in Reykjavík.
What does “með öllu” mean when ordering a hot dog?
“With everything” — mustard, ketchup, remoulade, crispy fried onions, and raw diced onion. The standard complete order. You can specify omissions: “með öllu nema hrálaukur” means “with everything except raw onion.”
Is there a food market in Reykjavík?
Kolaportið flea market on the harbour runs Saturday and Sunday from 11:00–17:00 and has a small food section selling traditional Icelandic products — harðfiskur (dried fish), lamb products, rye bread, and some homemade preserves. Not primarily a food destination but worth browsing if you are at the harbour on a weekend.
Are there food options along the South Coast?
Gas station cafés and small cafés in towns like Vík, Kirkjubæjarklaustur, and Skaftafell. The N1 at Kirkjubæjarklaustur on the South Coast has decent food for a quick stop. The Skaftafell visitor centre café is functional. The restaurant at Hotel Katla near Vík has reasonable prices for a sit-down lunch during the South Coast day trip.
Is there vegan street food in Iceland?
Options are limited outside Reykjavík. Hlemmur Mathöll has vegan vendors. Gló on Laugavegur in Reykjavík serves vegan bowls at ISK 2,200–3,000. Outside the capital, flexibility in eating is required — supermarket products are the safest vegan bet in rural areas.
How late can I get food in Reykjavík?
Bæjarins Beztu is open until 04:30 on weekends. 10-11 convenience stores are open 24 hours. Most restaurant kitchens close by 22:00–23:00. A handful of pizza places extend to midnight. The post-club food scene (Friday and Saturday after midnight) largely centres on the hot dog stand, 10-11, and a few döner kebab places on Laugavegur.
Traditional Icelandic snacks and food culture at its most accessible
Street food in Iceland is not a developed tradition in the same way as in South or Southeast Asia, but several traditional Icelandic foods can be eaten informally and cheaply.
Kleina: Iceland’s traditional fried twisted pastry. Dough is knotted into a figure-eight shape and deep-fried, producing a slightly dense, slightly sweet snack. Found at bakeries, petrol stations, and in home kitchens across Iceland. ISK 200–500 depending on size and location. The kleina at Sandholt bakery in Reykjavík (ISK 450) is the reference quality version; the kleina at an N1 petrol station is functional and fine.
Rye bread (Rúgbrauð): Dense, dark, slightly sweet rye bread — sold sliced at supermarkets and bakeries. Used as a base for open-faced sandwiches with smoked salmon, skyr, or butter. A Bónus rye bread loaf costs ISK 300–400. Combined with a pack of supermarket smoked salmon (ISK 1,200–1,500) and Icelandic butter, this makes an excellent picnic or roadside lunch.
Harðfiskur (dried fish): Wind-dried haddock or cod, sold in bags at supermarkets, tourist shops, and farm road stops. ISK 500–900 for a bag. Eaten as a snack with butter. High protein, strong flavour, genuinely Icelandic.
Skyr (from a supermarket): See the skyr and dairy guide for full detail, but from a street food / cheap eating perspective: a 500g container of plain skyr costs ISK 400–500 at Bónus. Eaten with a spoon from the container with some berries, it is one of the better portable cheap protein options available in Iceland.
Picnicking in Iceland — a practical approach
Iceland’s scenery makes outdoor eating genuinely worthwhile when weather cooperates. A few practical notes:
Where to sit: Iceland has no laws against sitting on private land for a brief picnic (the general right of access to uncultivated land applies). Roadside pull-offs, viewpoints, and lay-bys are all acceptable. Many waterfall and viewpoint car parks have picnic benches.
Cold and wind: Even in summer, eating outdoors can be cold and windy. A windproof layer and the car’s boot or a sheltered rock are both valid options.
What to bring from Bónus: The most cost-effective picnic from a Bónus involves:
- Rye bread (ISK 300–400)
- Smoked salmon (ISK 1,200–1,500 for 200g)
- Skyr (ISK 400–500 for 500g)
- Icelandic butter (ISK 500–700)
- Fruit or berries (ISK 300–600)
- A 1.5L water bottle (tap water is drinkable everywhere; refill from streams if above human habitation)
Total: approximately ISK 2,700–3,700 for food for two people for a day, versus ISK 8,000–16,000 for two restaurant meals.
Food halls and markets in greater Reykjavík
Beyond Hlemmur Mathöll, a few other eating spots function more like informal food halls or markets:
Kolaportið flea market (harbour, weekends): A covered market at the old harbour area, open Saturday and Sunday 11:00–17:00. The food section at the back sells traditional Icelandic products: harðfiskur, smoked lamb, rye bread, skyr, homemade jams. Small portions for tasting are sometimes available. Not a tourist food destination but genuinely authentic.
Grandi Mathöll (Grandagarður 16): A newer food hall in the Grandi harbour area, opened 2020. More design-conscious than Hlemmur, with vendors including Icelandic-inspired fast food, fresh fish, ramen, and a good Icelandic craft beer tap selection. ISK 2,000–4,000 per dish. More consistent quality than Hlemmur on average.
Reykjavík Roasters at multiple locations: Not a food hall but worth mentioning as a coffee-plus-pastry option. Their coffee (ISK 700–900) and Icelandic pastry selection make a good cheap morning fuel stop.
The Reykjavík food walk option
If you want a structured introduction to the accessible, authentic food options in Reykjavík (including the hot dog stand, sample Icelandic products, and historical context), a food walking tour is genuinely worth considering. Good guides cover 4–6 tastings, explain why each product matters in Icelandic food culture, and visit spots you would not necessarily find independently. The cost (ISK 12,000–18,000 per person) is high but comparable to a mid-range restaurant dinner and delivers more food and more context.
See the Icelandic food guide for a broader overview of the full food scene beyond street food.
The Ring Road petrol station food ecosystem
For visitors doing a full Ring Road circuit, petrol station cafés are a practical reality that deserves more honest coverage than typical travel guides provide. The N1 and Olis chains are present at virtually every service town along Route 1, and their café operations follow a consistent model: hot soup (usually lamb and vegetable), hot dogs, made-to-order sandwiches, pastries, and coffee.
The quality is functional. The lamb soup at a Ring Road N1 petrol station is not exciting, but it is hot, filling, and genuinely Icelandic in composition. On a long driving day when you stop in a small town with limited restaurant options, a bowl of soup and a coffee for ISK 1,200–1,600 is a practical and acceptable meal.
Some petrol stations along the Ring Road have upgraded their food operations significantly — the N1 at Höfn (southeast Iceland) and at Kirkjubæjarklaustur (south Iceland) have better food operations than average. At Akureyri in the north, there are proper restaurant alternatives within easy reach of the petrol stations.
For budget travel planning, estimating one mid-day meal at a petrol station café (ISK 1,200–1,800) and one proper restaurant dinner per day (ISK 4,000–8,000) covers a realistic Ring Road food budget of ISK 5,200–9,800 per person per day for meals, excluding alcohol.
Traditional snacks worth knowing beyond the hot dog
Harðfiskur (hard fish): Air-dried fish — usually cod or haddock — torn into strips and eaten with butter. Sold in bags at supermarkets and petrol stations for ISK 800–1,500. High protein, extremely Icelandic, and an acquired texture experience. Spread generously with Icelandic butter, which has a noticeably high fat content and a yellow tint from the grass-fed dairy cows.
Kleina (twisted doughnut): A traditional fried pastry twisted into a distinctive knot shape, fried until golden, and lightly spiced with cardamom. Found at bakeries throughout Iceland (ISK 200–400 each). Not sweet by international standards — more cardamom-forward than sugary. Goes well with coffee. Skúffukaka (sheet cake) is the other common bakery staple: typically chocolate, moist, sometimes with coconut flakes.
Rye bread with smoked lamb or salmon: Dense Icelandic rye bread (rúgbrauð), slightly sweet from the molasses used in baking, served with smoked lamb (hangikjöt) or smoked salmon. Available at most cafés for ISK 900–1,800. The laufabrauð (leaf bread) is a thinner, decoratively carved flatbread more associated with Christmas.
Noodle soup packets at 10-11: Not traditional, but a practical midnight option. The 24-hour 10-11 stores carry instant noodles and soup options useful for late-night hunger at low prices (ISK 400–700).
Understanding these secondary snack options rounds out the budget-eating picture for visitors who want to eat Icelandically without spending restaurant prices at every meal.
Top experiences
Best-rated activities across GetYourGuide and Viator.
Reykjavík All In One Food Tour - Eat, Drink & Explore with Locals
- Viator
Akureyri Food Walk With 4-5 Tastings and a Local Guide
- Viator
Private Snæfellsnes Peninsula and local Lunch
- Viator
Akureyri: From Akureyri lake Myvatn guided tour with lunch
- GetYourGuide
Akureyri: Private walking tour
- GetYourGuide
Akureyri: Port city walk local food
- GetYourGuide
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