What to eat and drink in Iceland: dishes, etiquette and dietary tips

Icelandic cooking is built on lamb, fish and dairy. Lamb grazes free all summer, cod and haddock are landed daily, and skyr and butter appear on almost every table. If you have three days, order kjötsúpa and plokkfiskur first: both are cheap, filling and easy to find.

The old preserved foods — hákarl (fermented shark), sour whey-pickled meats — survive mostly at Þorrablót, the midwinter feast. One cube of hákarl is enough for the experience; it tastes strongly of ammonia. Do not build a meal around it.

Eating out is the biggest daily cost after the car. A main course at a mid-range Reykjavík restaurant is roughly 3,500–6,500 ISK (about $25–48) in 2026, and a bar beer 1,200–1,800 ISK. The workaround most travellers use: one cooked meal a day, and breakfast plus road lunch from a supermarket.

Bónus and Krónan are the cheapest chains; a supermarket picnic of bread, cheese, skyr and fruit costs a fraction of a café lunch. Petrol-station hot dogs and soup are the reliable fallback on the Ring Road, where villages can be 100 km apart. Happy hours, usually around 16:00–19:00, roughly halve drink prices in Reykjavík.

Reykjavík has the widest choice: modern Nordic and seafood restaurants, food halls at Hlemmur and Grandi, and bakeries for breakfast. The south and south-east run on farm restaurants and langoustine — Höfn is the classic stop — plus greenhouse tomatoes and farm ice cream. In the north, look for hverabrauð baked in the ground at Mývatn and Akureyri's hot dogs with red cabbage. The Westfjords and islands lean on fish, plokkfiskur and seabirds.

Rural kitchens close early and may shut entirely outside summer, so eat before 20:00 and check opening before a long detour.

Tap water is free and safe everywhere; ordering bottled water is seen as a waste. Say 'skál' when toasting. Many casual places use counter ordering while full restaurants seat you, so watch what the room does. Tipping is not expected — service is included — though rounding up is fine.

Alcohol is sold only in state Vínbúðin shops and licensed bars, so buy for a road trip before you leave town. If you are driving, note Iceland's strict drink-driving rules and the need for buffer days in winter storms.

Vegetarian food is easy in Reykjavík and limited in the countryside, where soup and pizza are the usual fallbacks; say 'Ég er grænmetisæta'. Vegan options are good in the capital and supermarkets stock plant-based products, but plan road-trip food from Bónus or Krónan. Halal is limited to a few Reykjavík places and kosher is very limited, so bring supplies or plan ahead.

Gluten-free eating is well understood in Reykjavík, less so in small kitchens. Fish, lamb and dairy dominate menus, so shellfish and lactose allergies need a clear explanation in Icelandic or English before ordering.

Iceland has high food-safety standards and tap water is safe to drink, so the usual street-food cautions do not apply. The real risks are practical: long distances between services on the Ring Road, rural kitchens that close early, and winter weather that can delay a drive. Carry water and snacks, and do not rely on a single village for dinner.

If you have a serious allergy, treat rural restaurants as you would anywhere remote: ask directly, and carry your own medication.