Iceland: Land of fire and ice, glaciers and geysers… and undeniably expensive everything. The sheer beauty of Iceland often comes with a hefty price tag, and one of the most significant expenses travelers face is the cost of food. Stories of exorbitant restaurant bills and eye-watering grocery prices are enough to make even the most seasoned budget traveler nervous.
Is it truly impossible to enjoy the culinary delights of Iceland without emptying your bank account? Fortunately, the answer is a resounding no. While Iceland is undoubtedly pricier than many other destinations, with some careful planning, smart choices, and a willingness to embrace a more flexible approach to dining, it’s perfectly possible to manage your food expenses and still have a delicious and memorable trip. This guide aims to break down average food costs, provide practical strategies for saving money, and highlight the hidden gems and affordable options that Iceland has to offer.
Understanding Average Food Costs in Iceland
One of the first steps to effectively budgeting for food in Iceland is understanding the baseline costs. Knowing what to expect in terms of grocery prices, restaurant tabs, and even the cost of a simple cup of coffee will allow you to build a realistic and manageable food budget.
Groceries
The most effective way to combat high food prices in Iceland is to cook your own meals. However, even grocery shopping can present a challenge. Expect to pay more for basic staples than you would in many other European countries or the United States. For example, a loaf of bread might cost around four hundred Icelandic Krona, while a liter of milk could be approximately two hundred and fifty Icelandic Krona. A dozen eggs will set you back around seven hundred Icelandic Krona, and a kilogram of cheese might be anywhere from two thousand to three thousand Icelandic Krona. Essential items like pasta and rice are comparatively less expensive, often around three hundred Icelandic Krona per kilogram, making them excellent choices for budget-friendly meals.
Fresh produce tends to be quite expensive, as much of it is imported. Locally grown items, when in season, are often more affordable and a great way to support local farmers. Prices for fruits and vegetables will vary depending on availability, but plan to spend more than you usually would at your local grocery store.
The reason for these higher prices is multi-faceted. Iceland is an island nation, so import costs are significant. The Value Added Tax (VAT) on food is also a contributing factor. Finally, the relatively small scale of local food production means that economies of scale are harder to achieve.
Restaurants and Cafes
Dining out in Iceland is where the food costs can really add up. A basic lunch at a casual restaurant might cost between two thousand and five hundred and three thousand Icelandic Krona per person. Dinner, especially at a mid-range or fine-dining establishment, could easily exceed five thousand Icelandic Krona per person, and that’s before drinks.
Even something as simple as a cup of coffee and a pastry can be surprisingly expensive. Expect to pay around six hundred Icelandic Krona for a coffee and anywhere from five hundred to one thousand Icelandic Krona for a pastry.
The cost of alcohol is particularly high in Iceland due to significant alcohol taxes. A beer at a bar could easily cost one thousand two hundred Icelandic Krona, while a glass of wine might be around one thousand five hundred Icelandic Krona. Cocktails can be even pricier.
Fast Food and Convenience Food
A more budget-friendly option, but still not necessarily cheap, is fast food or convenience food. The iconic Icelandic hot dog, known as Pylsur, is a relatively affordable and popular snack. Expect to pay around five hundred Icelandic Krona for one. Burgers and pizzas from fast-food chains will generally cost around two thousand Icelandic Krona.
Gas station convenience stores often sell sandwiches, snacks, and drinks, but these tend to be more expensive than the same items purchased at a supermarket.
Daily Food Cost Scenarios
To illustrate the potential range of daily food expenses, consider these scenarios:
- Traveler Cooking Most Meals: This traveler primarily shops at budget-friendly supermarkets and prepares most meals at their accommodation. They might spend around three thousand to five thousand Icelandic Krona per day on food.
- Traveler Eating Out for Most Meals: This traveler dines at restaurants for most meals, including coffee breaks and drinks. Their daily food cost could easily exceed fifteen thousand Icelandic Krona.
- Traveler Mixing Cooking with Restaurants: This traveler combines self-catering with occasional restaurant meals, perhaps enjoying lunch out a couple of times and cooking dinner. They might spend around seven thousand to ten thousand Icelandic Krona per day.
Strategies for Saving Money on Food in Iceland
While the average food costs might seem daunting, there are numerous strategies you can employ to significantly reduce your expenses without sacrificing a satisfying culinary experience.
Cooking Your Own Meals
This is by far the most effective way to save money on food in Iceland. Renting accommodation with kitchen facilities, such as a guesthouse, apartment, or hostel, is a worthwhile investment.
When grocery shopping, head to budget-friendly supermarkets like Bónus (recognizable by its pink pig logo), Krónan, and Nettó. These supermarkets offer the best prices on basic groceries. Bonus is widely considered the cheapest, but all three are significantly more affordable than smaller convenience stores.
Consider packing some non-perishable snacks and drinks from home, if permitted by airline regulations. This can save you money on those impulse purchases at gas stations or convenience stores.
Eating at Affordable Restaurants and Cafes
While dining out every day can be expensive, there are ways to enjoy restaurant meals without breaking the bank. Look for local eateries and “soup of the day” deals. Many restaurants offer affordable lunch specials or happy hour deals with discounted drinks and appetizers. Utilize food delivery apps to compare prices and find deals, but be aware that delivery fees can add to the cost. Consider restaurants slightly outside the main tourist areas, as they often offer more competitive prices.
Embracing Budget-Friendly Food Options
Iceland has a few iconic foods that are relatively affordable. The Icelandic hot dog (Pylsur) is a must-try and a budget-friendly snack. Skyr, the traditional Icelandic yogurt, is nutritious, widely available, and reasonably priced. It makes a great breakfast or snack. Local bakeries offer affordable breads and pastries, perfect for a quick and cheap meal. If you find a particular food item you enjoy and know you’ll eat it regularly, consider buying a larger quantity to take advantage of bulk discounts.
Drinking Water Instead of Beverages
Icelandic tap water is incredibly pure, safe, and delicious. Bring a reusable water bottle and refill it throughout the day. This will save you a significant amount of money on bottled water and other drinks, which can be quite expensive.
Traveling During Off-Season or Shoulder Season
Traveling to Iceland during the off-season (winter) or shoulder seasons (spring and fall) can lead to lower prices in general, including potentially discounted dining deals as restaurants try to attract customers during quieter periods.
Food Sharing
If you’re traveling with friends or family, consider sharing the cost of groceries and cooking meals together. This can significantly reduce individual expenses.
Where to Find Affordable Food in Iceland
Knowing where to shop and eat is crucial for staying within your food budget.
Supermarket Recommendations
- Bónus: Widely considered the cheapest supermarket chain in Iceland. Offers a wide range of groceries at competitive prices.
- Krónan: Another budget-friendly option with a good selection of groceries.
- Nettó: Similar to Bónus and Krónan, offering competitive prices on essential items.
Food Halls and Markets
Hlemmur Mathöll in Reykjavik is a great example of a food hall where you can find various vendors offering affordable and diverse options. It’s a good place to sample different Icelandic dishes without committing to a full restaurant meal.
Restaurant Recommendations
Look for places that offer “dagur rétturinn” which is “dish of the day”. These tend to be much cheaper than a meal from the main menu.
Gas Stations
While convenient, gas stations generally have a limited selection and higher prices compared to supermarkets. Use them sparingly for snacks or drinks if absolutely necessary.
Icelandic Food Experiences on a Budget
Experiencing the local cuisine is an important part of any trip. Here’s how to do it without breaking the bank:
Trying Local Specialties Affordably
- Skyr: Widely available in supermarkets and convenience stores at a reasonable price.
- Rye Bread (Rúgbrauð): Often served as a side dish or part of a soup, it’s a relatively inexpensive way to sample a traditional Icelandic bread.
- Fish Soup (Fiskisúpa): Look for restaurants offering affordable bowls of fish soup. It’s a hearty and comforting meal.
Attending Local Food Festivals or Events
Check local event listings for food festivals or farmer’s markets, which can offer opportunities to sample local products and dishes at reasonable prices.
Looking for free food samples or promotions
Especially at weekends, local supermarkets will sometimes offer free samples of their products.
Happy Hours at Restaurants
A more affordable way to try Iceland’s beer, wine, and cocktails is to look for happy hours at restaurants.
Common Budget Mistakes to Avoid
To make your budget stretch as far as possible, be aware of these common pitfalls:
Eating only at tourist traps
Restaurants in popular tourist areas tend to be more expensive. Venture slightly off the beaten path to find more affordable options.
Buying pre-packaged meals or snacks from convenience stores all the time
These are generally overpriced compared to grocery store alternatives.
Not planning ahead and relying on expensive last-minute options
A little pre-planning can save you a lot of money. Plan your meals, shop at budget-friendly supermarkets, and consider packing snacks.
Underestimating the cost of alcohol
Alcohol is heavily taxed in Iceland. Limit your alcohol consumption or purchase it from duty-free shops upon arrival.
Conclusion
Yes, Iceland is an expensive country, and food costs can be a significant expense. However, it’s entirely possible to enjoy a delicious and fulfilling culinary experience without emptying your wallet. By understanding average food costs, implementing smart saving strategies, and avoiding common budget mistakes, you can manage your food expenses effectively.
Remember to prioritize cooking your own meals, seeking out affordable restaurants and cafes, embracing budget-friendly Icelandic foods, and planning ahead. With a little flexibility and resourcefulness, you can savor the unique flavors of Iceland and create unforgettable memories without breaking the bank. So, pack your reusable water bottle, research those local eateries, and prepare to explore the gastronomic landscape of the land of fire and ice. With a little planning, you can savor the flavors of Iceland without emptying your wallet.
