How expensive is dining out in Iceland? Let’s take a closer look

Iceland is a country that can surprise you in many ways – both with its landscapes and… restaurant prices. Have you ever wondered why a dinner out in Reykjavik might cost more than a vacation at the Baltic Sea? Well, sit back, because the answer isn’t simple. But hey, who said traveling is all about relaxation? Let me tell you now why an Icelandic menu might get your heart racing – and not necessarily because of spicy dishes. But don’t worry, I also have a few tips on how to save a few dollars.

The cost of living in Iceland – how restaurant prices hit your wallet?

Imagine this: you’re in a country with only about 350,000 people. Doesn’t sound like a problem, right? But now think about the fact that everything you eat, from avocados to beef, has to be brought from afar. And no, I’m not talking about a trip from the nearest supermarket. In Iceland, even though they grow tomatoes and cucumbers in greenhouses under special lights, it’s still just a drop in the ocean of needs. Most of the food that ends up on your restaurant plate is imported, and that costs… a lot. That’s why sometimes it’s better to have a cheese sandwich than a three-course meal. But hey, it’s Iceland, so maybe it’s worth indulging a little?

Now, a moment of reflection: taxes. You know, those annoying amounts that appear on the receipt? Iceland has one of the highest VAT rates in Europe, around 24%. And yes, you guessed it – that’s another reason why the bill at an Icelandic eatery might make your head spin. Restaurateurs have to cover those taxes, and we, poor tourists, pay more. It’s like paying extra for a museum ticket, but instead, it’s for your dinner. Ah, the joys of traveling!

High minimum wage = more expensive burgers?

OK, you might think: “What does the wage have to do with my burger?” Well, it has more to do with it than you think. In Iceland, the minimum wage is about 350,000 ISK, which converts to around $2,500 a month. Not bad, right? The problem is, every worker, from the waiter to the cook, has to earn that much. And who pays for it? Yes, you guessed it – you! So, next time you see 15,000 ISK (about $100) on your dinner bill, remember that you’re supporting the local economy and the effort of all the people working so you can eat your burger.

For comparison: in other European countries, labor costs in gastronomy are much lower, which makes eating out cheaper. Iceland, however, is a whole different story, and that’s why prices are so high here. Of course, I could say that this is the only hurdle, but I wouldn’t be me if I didn’t add a few more “attractions.”

How not to go broke eating out in Iceland?

Relax, there are ways to have a culinary adventure in Iceland without emptying your wallet. You just need to know where to look. Start with the “dish of the day.” I know, I know – it sounds boring, but in Iceland, it could be your savior. Many restaurants and cafes offer daily specials at a lower price. And if you’re lucky, outside the tourist season, you’ll find plenty of promotions too. Who would’ve thought that a haven for fish soup lovers could be so kind?

Besides, it’s worth paying attention to local products. Icelandic fish? Brilliant! Lamb? One of the best in the world. If you forgo imported specialties in favor of what grows and swims around Iceland, you could save some money. Oh, and don’t forget the hot dogs. Seriously, Icelandic hot dogs are a true legend! For something that costs less than coffee, it might just be the best investment of your life.

• Order the dish of the day – it really works!
• Take advantage of promotions – keep an eye out for cafe deals
• Choose local products – fish, lamb, those kinds of things
• Avoid tourist traps – seriously, those places are like ATMs for restaurateurs

Icelandic cuisine – what’s worth trying?

If you decide to splurge on a proper dinner, I recommend the classics. Start with “ktofiski,” which is dried fish. Sounds weird, but Icelanders love this dish, and since they do, it might be worth giving it a shot. Lamb is another must-have. Honestly, you won’t find better anywhere else in the world. And then there’s fish soup – perfect for a cold Icelandic evening. Although prices are high, the quality of the products will not disappoint.

Icelanders don’t mess around when it comes to food. Their traditional dishes are made with the highest quality ingredients, and the country’s cuisine is a true feast for the senses. So maybe it’s worth spending a few extra dollars to experience Icelandic cuisine in all its glory? Sure, you might have to tighten your belt a bit when you get home, but memories are priceless, right?

Is eating in restaurants in Iceland expensive?

Iceland – the land of ice, fire, and… absurd dinner bills? Well, I won’t lie to you – it’s not cheap there. Once, sitting in Reykjavik, I paid for a burger what I’d normally spend on a good pair of shoes back home. But let me tell you – it was worth it. Besides, imagine this: you’re sitting in a restaurant with a view of a volcano, sipping coffee (for the price of half a supermarket back home), but the feeling… priceless. Meal prices can range from $25 to $75, depending on whether you stop by a downtown Reykjavik joint or opt for more local places. And what about fast food? Well, even a hamburger in Iceland comes with a price – and it’s higher than in most European cities.

Rental costs affect restaurant prices

And where do those astronomical prices come from? The answer is simple – rent. Renting a place in downtown Reykjavik costs so much that owners have to raise prices to break even. I had a chance to talk to the manager of one of the more popular spots, and he told me that sometimes he wonders if selling hamburgers by the weight of gold would make sense. And while the center is expensive, you can find something more affordable on the outskirts of town, although… it still won’t be the price you’re used to seeing in a diner back home. It’s also worth considering booking meals in advance – sometimes that can save your wallet!

Eating out vs. cooking at home

And now let’s talk about an option that can save your budget in Iceland – cooking. Yes, I know, traveling is not the time to stand over a stove, but let me tell you from experience that shopping at the supermarket and cooking in a rented apartment can be the key to surviving on this expensive island. Store prices? Higher than back home, but still more reasonable than a restaurant bill. I’m telling you – a supply of bread, butter, and local cheese might be your best friend. And if you manage to grab something fresh at a local market, you’re already a master of saving!

Is it worth eating local products?

And now, the gem – Icelandic specialties. Seriously, the first time I tried fermented shark, I wanted to back out of the restaurant. But as they say, when in Rome…! Iceland is a paradise for fish and lamb lovers, and those freshly caught fish? Amazing. Sure, a meal consisting of traditional dishes might cost from $40 to $120, but the experience tastes better than money (or at least that’s what I tell myself). Many restaurants offer seasonal ingredients, so it’s worth diving into something you won’t eat anywhere else in the world. You only live once, right?

What cheaper food options can be found in Iceland?

OK, now something for the savvy traveler. If you don’t want to spend a fortune on every dinner, I have a few tricks for you. First – food trucks. Icelandic food trucks are gold! For $10-15, you can get a solid burger, hot dog, or fish and chips. And if you want to cut costs even more, check out supermarkets. There, you’ll find ready-made sandwiches and salads that will save you from bankruptcy. And remember, lunch promotions are something really worth keeping an eye on. Some restaurants offer cheaper menus at noon – a great option if you don’t feel like overpaying for dinner.

Drink and alcohol prices in restaurants

Drinks – a real trap in Iceland. $12 for a beer? No joke. Wine? You can start calculating how much you’d buy for that back home. Of course, you can try to limit those expenses, for example by buying alcohol duty-free at the airport or in special liquor stores. By the way, an interesting thing – drinking alcohol in public places is regulated in Iceland, so restaurants have a monopoly on expensive booze. Does that mean you should give it up entirely? Maybe not, but it’s worth thinking about so you don’t burn through your whole budget on drinks.

Is it worth planning meals in advance?

And now the best advice I can give you – plan, plan, and plan again! Iceland is not the place for spontaneously walking into the first restaurant you see. Booking a table in advance not only helps avoid unexpected costs, but sometimes you’ll find deals for early reservations. And those culinary events – a true paradise for foodies! Also, remember to mix things up – one day a restaurant, the next day cooking in your apartment. Such a balance will help you manage your expenses while still enjoying the best flavors Iceland has to offer without having to take out a loan.