Why Food in Iceland Can Make or Break Your Budget
A modest sit-down dinner in a mid-range Reykjavík restaurant (a main course and a soft drink) routinely costs 35 to 50 Euros per person. A draft beer in a bar costs 10 to 13 Euros, and a simple bowl of fish soup can reach 22 Euros. For a couple traveling for 10 days, eating three meals daily in restaurants will add 1,500 to 2,000 Euros to your trip costs.
By adopting the local Icelandic approach of self-catering and discount grocery shopping, you can eat nutritiously and well for under 15 to 18 Euros per person per day.
Supermarket Hierarchy: Where to Shop
- Bónus (The Gold Standard): Famous for its iconic pink pig logo on a bright yellow background. Bónus is Iceland cheapest grocery chain by a wide margin. Stores are no-frills warehouse spaces with giant walk-in cold rooms. Stock up here whenever you see one.
- Krónan (Close Second): Krónan is slightly more expensive than Bónus (roughly 5 to 10 percent more), but offers a much wider selection of fresh produce, organic items, artisan breads, and hot grab-and-go deli counters.
- Nettó: Good regional option in North and East Iceland (Akureyri, Egilsstaðir) with competitive prices.
- 10-11 & Krambúð (Avoid at All Costs): 24-hour convenience stores located primarily in downtown Reykjavík and tourist hubs. Prices are marked up by 50 to 100 percent compared to Bónus. A sandwich that costs 550 ISK at Bónus can cost 1,200 ISK at 10-11.
Best Budget Grocery Staples at Bónus
- Skyr (Traditional Icelandic Cultured Dairy): Thick, high-protein, virtually fat-free dairy that tastes like strained Greek yogurt. A 500-gram tub of Isey Skyr costs around 250 to 320 ISK (under 2.20 Euros) and provides an incredible filling breakfast or trail snack.
- Rúgbrauð (Icelandic Dark Rye Bread): Dense, sweet, and traditionally baked underground near geothermal springs. Pair it with butter and tinned smoked mackerel for a cheap traditional lunch.
- Flatkaka (Icelandic Rye Flatbread): Thin, charred round flatbreads. Smear with butter and top with smoked lamb (hangikjöt) or cheese for quick road-trip wraps.
- Pasta, Rice & Pesto: Standard pantry staples cost almost the same as in continental Europe at Bónus. A packet of pasta and a jar of pesto costs under 2.50 Euros total.
- Frozen Fish Fillets: Fresh fish in restaurants is expensive, but frozen Icelandic cod and haddock fillets at Bónus cost under 8 Euros for a generous multi-portion pack.
The Tap Water Rule
Never purchase plastic bottled water in Iceland. Icelandic municipal tap water is naturally filtered through porous basalt lava rock fields for decades before being pumped straight into homes and taps. It contains zero chlorine or chemical additives and is among the purest, tastiest drinking water on earth. Bring a reusable water bottle and fill it from any tap, guesthouse sink, or mountain stream.