Our Favorite Food & Drinks in Iceland

Will travel for food – that should be our slogan.  We love to explore cities and get lost in nature during our vacations, but finding good food is and always will be our number one travel goal as chefs.

While driving Iceland’s ring road, we were fortunate to find a lot of delicious and local food along the way.  This is by no means an all encompassing and complete list of Icelandic fare, but some of the cuisine that we enjoyed during our adventures.  Once outside of Reykjavík, it is sometimes a challenge to find restaurants since many parts of Iceland are not very populated.  We hope that this list helps you as you plan your trip to explore this beautiful island nation.

#1 - Hot Dogs

No trip to Iceland is complete without having a traditional Icelandic hot dog.  There is a famous little stand in the middle of Reykjavík called Bæjarins Beztu Pylsur, which translates to The Town’s Best Hot Dogs.  It’s tucked away on a corner with only a handful of tables that you might miss if you blink. 

The traditional Icelandic pylsa, or hot dog, is made with a combination of beef, lamb and pork.  A steamed or toasted bun is loaded up with Icelandic ketchup (lighter and more spiced than American ketchup), raw onions, and french fried onions before being topped with a hot dog, brown mustard and yellow remoulade.  I love how the stand even had hot dog holders built into the tables.  This was by far the Icelandic food that we ate the most as we traveled around the island and probably the food that I’ll miss the most.

In Northern Iceland, we found another gem of a hot dog stand – Pylsuvagninn á Akureyri.  While they serve the traditionally topped Icelandic hot dogs, they also specialize in different variations like the Pizza Dog and Lava Dog.  Right in the main shopping area, this is a great place to stop for dinner or just for a snack.  An added bonus for families traveling with children, there is a small playground right behind this stand. 

#2 - Lobster

Being an island nation, Iceland is known for its fishing industry, especially Lobster and Langoustine.  There are quite a few restaurants along the Southern coast that specialize in local Lobster, but the best we had was right in the capital city.  Sægreifinn, or Sea Baron, is a Reykjavík institution that is located in a weathered blue and white building on the harbor.  We went here with the one goal of getting their famous lobster soup or humarsupa. 

When I say that this was the best seafood bisque that I’ve ever had, it is no exaggeration.  Creamy and loaded with spices, it almost has a little bit of a Thai red curry taste to it.  Once the hot soup is ladled into a bowl, they drop pieces of raw langoustine into it, which cooks perfectly by the time you are ready to eat it.  I realized after the fact that I didn’t even take a picture of it because we were too busy scarfing down this amazingly velvety and complex creation.

#3 - Bread Ice Cream

Icelanders love ice cream and it doesn’t matter what the temperature is outside.  They eat just as much in the winter as the summer months, keeping in mind though it only gets up to about 55 degrees in the summer.  I had never heard of putting savory bread in ice cream before, but it seems to be a common menu item.  

On our first day in Reykjavík, we ate lunch at Cafe Loki, or Kaffi Loki, right across the street from the famed Hallgrímskirkja church.  While they serve many dishes with rye bread, the one that stands out is their Rye Bread Ice Cream.  Topped with whipped cream and a rhubarb almost caramel like syrup, this ice cream was sweet with a bit of savoriness that made it so interesting.  When I took the first bite, the flavor was something familiar and ingrained in my palate, but I couldn’t place it.  After a few more bites, I realized what it tasted like – Raisin Bran! 

Geyser bread is a staple in Iceland.  For a nation that is fueled by geothermal energy, they also tap into by burying bread and cooking it using the earth’s heat.  Vogafjós restaurant and farm, located near the volcanic Lake Mývatn in Northern Iceland, serves up Ice Cream filled with their house made Geysir bread.  Loaded with chocolate bits and topped with whipped cream, berries and chocolate sauce, this was a great ending to the best literal farm to table meal that we had on our trip. 

#4 - Fish & Chips

Sveitagrill Míu Food Truck, Hvolsvöllur - Southern Iceland

Fish & Chips are one of the best comfort foods when done right and Sveitagrill Míu, aka Mia’s Country Grill, does just that.  Located near the base of the breathtaking Skógafoss waterfall in Southern Iceland, it is easy to miss this food truck that is set back in some trees at the opening of the road.  We didn’t even know what they served when we stopped because we didn’t see a menu anywhere, but we stopped anyway to check it out because we are a sucker for food trucks and roadside stands.

This little food truck would stand on its own against any chippy in the U.K.  The fish was so fresh, light and flaky.  It was battered and fried to perfection and served with wedge fries and a house made tartar sauce.  It was some of the best fish and chips that I’ve ever had and made even better by being a random little find along the road.   

#5 - Lamb

Lamb is the quintessential meat of Iceland and you will find it on almost any menu there.  In a country where the people are outnumbered almost 2 to 1 by sheep, it only makes sense.  Driving the ring road that circles the whole island, it was a constant game of avoiding sheep on and near the road. 

Icelandic lamb is known as some of the most premium in the world as the sheep are allowed to roam free and have a diet of grass, moss, berries and pure glacial water.  Side Note: never buy bottled water in Iceland.  They are very proud of the purity of their water and it is far superior to any bottled version.

Warm buffets are available throughout the country in roadside cafes and even gas stations.  They usually consist of soup served with bread and butter or an entree like lamb shanks and potatoes.  There aren’t a ton of places to stop along the road, so it’s nice to find warm food when you do.  We took a detour at Bókakaffi Hlöðum in Egilsstaðir with the intent of just grabbing some pastries and coffee for a late breakfast.  When we arrived, there was a buffet set up with breaded lamb chops and veggies.  Toby couldn’t pass that up so he bought one plate.  The breading reminded me of the consistency of Shake & Bake but with a savory and homemade taste that surprised us all.  I could have eaten the breading alone, it was that good.  I imagine the buffet menu changes daily, but, if you are lucky enough to stop on a day that they are serving breaded lamb chops, they are a must try.

Being an Arctic country, Iceland’s soup game is strong.  The most popular is simply called meat soup – a broth based soup with lamb, potatoes, carrots and herbs.  It is served everywhere and we probably tried ten different iterations of this classic Icelandic dish on our trip around the island.  The best by far was from this food truck that we just happened upon adjacent to the Deildartunguhver Hot Spring, Europe’s largest hot spring, just outside of Reykholt.

The food truck is surrounded by greenhouses where the owner also cultivates and grows tomatoes.  The menu is simple with fish & chips, hot dogs, and grilled sandwiches.  The stars of the show though are the soups.  The tomato soup was filled with herbs and so savory, yet super fresh at the same time.  The meat soup was even more amazing – a creamy broth that was filled with flavor and loaded up with perfectly cooked chunks of Icelandic lamb.  It was by far the best meat soup of our trip.  We spent some time talking with the owner who told us a little about his process in making the soup and some of the ingredients that he uses that make his unique.  The other great thing about this food truck is that there is picnic seating inside the greenhouse, so you can enjoy your food surrounded by beautiful tomato plants.   

#6 - Waffles & Pancakes

Icelandic pancakes, or Pönnukökur, are eaten both for breakfast and dessert.  Similar to a French crêpe, the batter is cooked thin and filled with Skyr (a wonderful thick and rich Icelandic yogurt) and fruit or with whipped cream and jam.  They are delicious with a cup of coffee at any time of the day.

It seems weird that Pylsuvagninn á Akureyri, a hot dog stand, is back on our list for sweet foods, but we can’t miss highlighting these delicious dessert waffles.  Similar to a Liege waffle, these have a sugar like crunch on the outside and are sweeter than the typical Belgian waffle.  Topped with whipped cream, berries and sauce, this dessert is a dream.

#7 - Pastries

In this idyllic port city, tucked away in the Eastern fjords, is a quaint restaurant and dessert cafe located in the waterside Hótel Aldan.  Entering this cafe at the beginning of the much photographed rainbow road, it feels like walking into a French pâtisserie with the beautiful display of cakes and desserts.  I have no idea what this cake was even called that we ordered, but it reminded me of a tres leches cake.  A yellow cake soaked with sweet cream and filled with strawberries, it was topped with almost a light, whipped cream cheese topping and chocolate pieces.  We didn’t eat dinner there, which I regret after seeing the locally sourced and fantastic looking dinner menu.

Coffee shop meets book store, Bókakaffi Hlöðum is an understated little cafe located just on the edge of town in Egilsstaðir, a city in Eastern Iceland.  They serve both savory dishes as well as pastries and cakes.  I asked about the name of this cake and they didn’t really say, only that it was topped with a kind of sugar and egg crust and shredded coconut.  I love how Icelanders aren’t afraid of using lots of whipped cream.  When asked if I wanted cream with my cake, I was surprised that the dollop was almost bigger than the actual cake itself.  It’s always real freshly whipped cream, which I’ll take any day.   

One of the oldest bakeries in Iceland, Kristjans Bakari has been operating in the northern city of Akureyri since 1912.  It is located in the downtown area (right across from Pylsuvagninn á Akureyri) and they specialize in breads, pastries and desserts.  They also serve traditional Icelandic fried sweet bread, called kleinur, which are tied in a knot and have a hint of cardamom and spice to them.  They are denser and much less sweet than American donuts and are served daily in almost any Icelandic bakery or cafe.

#8 - Arctic Char

High on my list of food to try in Iceland was the Arctic Char.  Native to cold water lakes or coastal regions, it is a mild fish that I would describe as somewhere between trout and salmon.  At Vogafjós farm restaurant, the Char was pan seared to perfection, showcasing its beautiful pink/light salmon color and meaty yet flaky texture.  It was served with a potato cake and a fresh salad that was topped with their house made salad cheese.  This kind of cheese was typical on most salads in Iceland and was a soft, fresh cheese that tasted a little like a very mild feta. 

#9 - Egils Appelsin

Our family is a sucker for orange soda when we travel.  We love drinking Orangina in France and Fanta in Spain (it does taste different there), so we were very happy to find Iceland’s very own soda, Appelsín, which simply translates to the word orange.

A little less sweet than our American orange sodas, Appelsín is fizzy and light.  We drank it with most of our meals and bought bottles and cans when we stopped at gas stations.  I made the mistake of buying one that said “án sykurs” on it which means sugar free, so be careful with that unless you want the diet version.  As you can see, our youngest son is hugging his last bottle goodbye in the airport. 

There are a few things to know about alcohol in Iceland.  First, it is very expensive!  In restaurants, cocktails might be as much as $20 USD and beers around $10 USD and up. Secondly, retail alcohol is only sold in state liquor stores called Vínbúðin.  While cheaper than at bars or restaurants, retail alcohol is still more expensive than what we pay in the states. 

We had heard of Iceland’s signature spirit, Brennivín, through some travel shows that we’ve seen.  We also heard that it is better to buy spirits in the airport as they are cheaper and duty free, so we picked up a bottle upon our arrival at Keflavík international.

Brennivín, also known as “Black Death”,  is distilled with fresh Icelandic water and caraway seed, giving it a distinct rye taste with anise undertones.  Prohibition on spirits lasted until 1935 in Iceland, the same year that Brennivín was introduced commercially once the ban was lifted.  It was originally branded with a black label with a white skull (later the skull was changed to a map of Iceland) to try to discourage people from drinking it.  It had the opposite intended effect and instead popularized this signature spirit of Iceland.  The prohibition on beer didn’t end until 1989, so we were told that older generations in Iceland would put shots of Brennivín in their non-alcoholic beer during that time. 

It is definitely an acquired taste, but was fun to try.  We bought a bottle distilled by 64° Reykjavík Distillery in the airport on our way home that was a little bit smoother and milder version, which I preferred.  I mainly saw it served cold in shot glasses, so I say do as the locals do: Skál – cheers!