25 Sep How to Budget for Food in Iceland

People generally know two things about Iceland. First, it is BEAUTIFUL. There are enough waterfalls, black sand beaches, and glaciers to keep you occupied for days. Second, it is expensive. While there are many attractions to see, your budget might not be expansive enough to accommodate all of them. The main budget categories to consider for a road trip around Iceland are food, gas, and lodging. Right now we will tackle how to budget for food in Iceland. *Side note: all of the prices here reflect food for two people.

Interested in learning more about the attractions I visited while in Iceland? Then check out my Top 10 Things to Do in Iceland. Interested in booking a tour around Iceland? Then I recommend checking out the best Golden Circle tours.

Contents:

1) Restaurants

2) Grocery Stores

3) Gas Station Hot Dogs

4) Bed and Breakfasts

1) Restaurants – Iceland Food Budget

During our nine day road trip, we ate at five restaurants / cafés (one of those of course had to be for seafood). We did not indulge in any high-end restaurants, which helped us maintain a budget. However, our restaurants were not low quality even though they were on the cheaper end. Additionally, we did not find the prices to be ridiculously high. Most of the restaurant prices were comparable to what we would see in the U.S. Here is the breakdown of our restaurants: 

Gamla Fjósið

• Restaurant website
• $23 – Day 2
• We shared the Steinar-Steak Sandwich with bearnaise sauce. Oh. My. GOODNESS. It was delicious. However, I would have ordered a whole sandwich for myself if I knew it was going to be that good. It also came with a small salad and fries. 
• Nearby attractions: Seljavallalaug Swimming Pool and Skógafoss Waterfall

Wok on Vik

• Restaurant website
• $30 – Day 3
• We stumbled upon this restaurant within a convenience store. We each ordered our own dish, and they were delicious with satisfying portion sizes. I ordered the Number One, which was egg noodles with chicken, broccoli, zucchini, and garlic black pepper sauce. Additionally, my boyfriend ordered the Number Two, which was rice noodles with beef, broccoli, baby corn, and black bean sauce.
• Nearby attractions: Reynisfjara Black Sand Beach and Yoda Cave

Skalinn Diner – Iceland Food Budget

• Restaurant website
• $40 – Day 5
• The diner was super cute and offered a large array of options. We ordered the Korean hot wings, chicken wrap, and loaded french fries. This was the one restaurant where we had to work a little to finish our food. The portion sizes were very generous, especially for the loaded fries. 
• Nearby attractions: Stuðlagil Canyon and Rainbow Road

Sægreifinn (Seabaron)

• Restaurant website
• $50 – Day 8
• Seabaron was our most expensive yet most delicious meal. We ordered lobster soup (which came with a basket of bread), a shrimp skewer, and a tusk skewer. The lobster soup was incredible. I could have ordered three or four servings of the soup alone and walked away fully satisfied. The shrimp and tusk were also fantastic. However, you might want to order another skewer or two if you are looking for a big meal.
• Nearby attractions: Fagradalsfjall Volcano and Voyager Sculpture

Reyjkavík Roasters – Iceland Food Budget

• Restaurant website
• $12 – Day 9
• We stopped at this café on our last day to grab some coffee and a muffin. It had a nice atmosphere with a bunch of plants, which we both love. 
• Nearby attractions: Blue Lagoon and ice cave tours

We ate at a restaurant on about half of our days, which was a good amount for us. While we enjoyed our sandwiches and gas station hot dogs, we also appreciated a sit down meal now and then. Based on your budget, you could completely cut out restaurants or even add in a couple more.

Kirkjufellsfoss with Mt. Kirkjufell in the background

2) Grocery Stores

Here is the breakdown of our grocery store spending: 

• $45 – Day 1
• $30 – Day 4
• $8 – Day 5
• $23 – Day 6

Where did we get the majority of our food / meals? Grocery stores. We stopped at a grocery store the first day and then every couple of days afterwards. Our goal was to save money by buying items such as meat, bread, snacks, peanut butter, fruit, pasta, etc. for our breakfasts, lunches, and sometimes dinners. It also ended up being more convenient as we did not have to plan our day around eating. Additionally, at our first grocery store stop, we bought two large bottles of water and then continuously filled them throughout our trip.

For breakfast, we generally had peanut butter and jam toast (we used the toaster in the kitchen within our lodging). Some days we had an apple or banana with peanut butter. For lunch, we packed sandwiches to take on our hikes or made them in the car while driving. For a couple of dinners, we made pasta at our hostels at night, for our lodging accommodations all had full kitchens. And do NOT forget about the snacks. We bought a lot of chips because they are the perfect snack for longer drives. My boyfriend also brought beef jerky from the U.S., which was a fantastic idea. 

Fun fact: they have some different flavors for chips in Iceland compared to the U.S. For example, there were a lot of paprika flavored chips. For brands such as Doritos, they had the same flavors as they did in the U.S. but with different names. 

View of Stuðlagil Canyon after walking for a bit along the basalt rock columns

3) Gas Station Hot Dogs

Here is the breakdown of our gas station hot dog spending: 

• $9 – Day 2 – two hot dogs
• $15 – Day 4 – three hot dogs
• $14 – Day 5 – two hot dogs and fries
• $9 – Day 7 – two hot dogs

You might be thinking to yourself, really? Gas station hot dogs? Yes, you read that correctly. Before we traveled, I did a little research of my own on how to budget for food in Iceland. I read many articles that raved about the gas station hot dogs, for they are a cheap yet yummy option. For those who have dietary restrictions and cannot eat hot dogs, check out this article on traveling in Iceland as a vegetarian.

Once we arrived in Iceland and finally tried gas station hot dogs for ourselves, they did not disappoint. They generally cost around 500 ISK (~$4) each. Also, our favorite part was they had both regular onions AND fried onions as toppings. Almost every gas station at which we stopped had hot dogs. The only ones that did not were either self-service or super small (just take a glance at what the building looks like on google maps). Some even had other food options, for instance hamburgers and french fries. 

Saving money on food by buying gas station hot dogs let us then splurge on a few excursions. For example, we booked a glacier kayaking tour on the Glacier Lagoon and a snorkeling tour in the Silfra fissure.

Enjoying the basalt rock columns on the beach

4) Bed and Breakfasts 

For all of our lodging, we stayed at guesthouses, hostels, and bed and breakfasts. Only our first accommodation, Skyggnir Bed and Breakfast, had complimentary breakfast. They had bread, jam, cereal, yogurt, granola, etc. We always appreciate a complimentary breakfast, especially as it keeps us within our budget for food in Iceland! Additionally, we found a beautiful hidden gem not far from the bed and breakfast.

Some of our other accommodations did offer breakfast for a fixed price, but we chose to skip out on that option.

*Side note: be sure to book lodging somewhat in advance for more options and cheaper prices. Accommodations can sell out in Iceland, especially in the peak travel seasons of summer or winter.

PIN IT to save it for later!

Start booking your Iceland excursions today: Best Tours for Iceland Excursions.

Why not book a two-day tour so you do not have to handle any logistics?: Best Two-Day South Coast Tours of Iceland.