18 Dec Food Budget for Iceland: 4 Essential Tips to Save Money

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 and even weeks. 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, lodging, and excursions. Right now we will tackle how to maintain a food budget for Iceland.

*Side note: all of the prices below reflect food for two people. If you are wondering “how much should I budget for food in Iceland?” For reference, my partner and I spent a total of $308 on food for nine days in Iceland. We did not have a daily food budget for our Iceland trip, but the average daily amount we spent on food was $34.22 (for two people).

Interested in learning more about the attractions we 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. Hint: Golden Circle tours generally include stops at the rift between the North American and Eurasian tectonic plates as well as the stunning Gullfoss Waterfall.

Contents:

1) Enjoy a Few Restaurant Meals

2) Stock Up at Grocery Stores

3) Find Cheap Meals in Gas Station Hot Dogs

4) Book Lodging with Complimentary Breakfast

5) BONUS: Hidden Gem Attractions in Iceland

1) Enjoy a Few Restaurant Meals

During my partner and I’s nine day road trip around Iceland, 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 visit Iceland on a budget. Additionally, most of the restaurant prices were comparable to what we would see in the U.S.

Moreover, we ate at restaurants for one meal on half of our days. While we enjoyed our grocery store sandwiches and gas station hot dogs, we also appreciated a sit down meal now and then. Based on your daily food budget for Iceland, you can completely cut out restaurants or even add in a couple more.

For further tips on how to save money on food in Iceland, you can share meals at restaurants and/or find restaurants that have large portion sizes. 

Here is the breakdown of our restaurant spending in Iceland: 

Gamla Fjósið

• Gamla Fjósið website
• $23 – Day 2
• We shared the Steinar-Steak Sandwich with bearnaise sauce, and it also came with a small salad and fries. 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. 
• Nearby attractions: Seljavallalaug Swimming Pool and Skógafoss Waterfall

Wok on Vik – Food Budget Iceland

• Wok on Vik 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. My partner 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

Rainbow at the base of Skógafoss

Skalinn Diner

• Unfortunately, I think the restaurant is permanently closed.
• $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. Finding a restaurant with large portion sizes is a great tip for how to save money on food in Iceland.
• Nearby attractions: Stuðlagil Canyon and Rainbow Road

Sægreifinn (Seabaron)

• Sægreifinn Facebook Page
• $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 multiple skewers if you are looking for a big meal.
• Nearby attractions: Fagradalsfjall Volcano and Voyager Sculpture

Reyjkavík Roasters – Food Budget Iceland

• Reyjkavík Roasters website
• $12 – Day 9
• We stopped at this café on our last day to grab 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

Enjoying our time in Iceland at the Blue Lagoon

2) Stock Up at Grocery Stores – Food Budget Iceland

Here is the breakdown of my partner and I’s grocery store spending for nine days traveling around Iceland: 

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

What is one of the best methods to save money on your food budget in Iceland? Stocking up at grocery stores. Our goal was to save money by buying items such as meat, bread, snacks, peanut butter, fruit, pasta, etc. Carrying around food we bought from the store also turned out to be convenient as we did not have to plan our day around finding restaurants. Additionally, we bought two large bottles of water during our first grocery store visit and then continuously filled them throughout our trip wherever clean drinking water was available.

For breakfast, we generally had peanut butter and jam toast (we used the toaster in the kitchen within our lodging). On other days, we had an apple or banana with peanut butter. For lunch, we packed sandwiches to take on our hikes, or we made sandwiches in the car while driving. For a couple of dinners, we made pasta. A lot of lodging accommodations in Iceland have full kitchens, so take advantage of that when possible. And do NOT forget about the snacks. My partner also brought beef jerky from the U.S., which was a fantastic idea. 

Fun fact: they have some different chip flavors in Iceland compared to the U.S. For example, there were a lot of paprika flavored chips. Brands such as Doritos had similar flavors to those available in the U.S., but they had different names. 

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

3) Find Cheap Meals in Gas Station Hot Dogs

Here is the breakdown of how much my partner and I spent on gas station hot dogs in Iceland: 

• $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 craft a food budget for Iceland. People rave about the gas station hot dogs, for they are one of the best options for cheap food in Iceland (and they taste good). 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, we were not disappointed. The hot dogs generally cost around 500 ISK each. Additionally, we were pleasantly surprised that they usually had both regular onions AND fried onions as toppings. Moreover, almost every gas station had hot dogs. The only ones that did not have hot dogs for sale were either self-service or super small (just take a glance at what the building looks like on google maps). Some gas stations even had other foods, for instance hamburgers and french fries, which are also great options for cheap food in Iceland.

Saving money on our food budget for Iceland by buying gas station hot dogs allowed us to feel comfortable enough to 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) Book Lodging with Complimentary Breakfast – Food Budget Iceland

My partner and I stayed at guesthouses, hostels, and bed and breakfasts during our nine day road trip. However, only our first accommodation, Skyggnir Bed and Breakfast, had complimentary breakfast. Their breakfast offerings included bread, jam, cereal, yogurt, granola, etc. We always appreciate a complimentary breakfast, especially as it keeps us within our food budget in Iceland! Some of our other accommodations offered breakfast for a fixed price, but we chose to skip out on that option.

There are plenty of bed and breakfasts available throughout Iceland. You just need to keep an eye out for them and their complimentary breakfasts to help make your dreams of visiting Iceland on a budget come true.

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

Kayaking around the Glacier Lagoon on a tour

5) BONUS: Hidden Gem Attractions in Iceland

I cannot help myself – I have to talk about a few Iceland attractions. My Iceland trip turned out to be one of my favorite trips, and you will start to understand why once you take a look at the attractions below. Visiting Iceland felt like I was visiting another world. How else can I explain the stunning waterfalls, turquoise rivers, moss-covered canyons, glacier lagoons, etc. I would visit Iceland again in a heartbeat. In fact…I just might.

In the meantime, here are a few of the best hidden gems in Iceland! For a fun fact, Stuðlagil Canyon turned out to be my favorite attraction in all of Iceland.

• Hidden Hot Springs by Seljavallalaug Pool: two small geothermal pools right beside the river
• Stuðlagil Canyon: basalt rock column canyon with a turquoise glacial river
• Gljúfrabúi Waterfall: waterfall located within a gorge
• Tarn in Flúðir: trail to a lake on top of a mountain

Enjoying the views at the Tarn in Flúðir

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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.