The Hot Dog Stand That Started It All
The hot dog — pylsa — arrived in Iceland with British and American forces during the Second World War and never left. The country's most famous stand is Bæjarins Beztu, a small red kiosk on Tryggvagata near the old harbour in central Reykjavík, selling since 1937. A standard order is "eina með öllu": a lamb-and-pork sausage in a steamed bun with raw and fried onion, ketchup, sweet brown mustard and a creamy remoulade. Queues move quickly, and it is open late, which makes it a sensible first stop after a late Keflavík arrival.
The lamb content is what distinguishes an Icelandic pylsa from a Danish or German sausage, and it is worth ordering plain first to taste it. Bæjarins Beztu keeps long hours and a short menu, so there is nothing to decode. Other reliable stands cluster around Ingólfstræti and the bus terminal at Hlemmur. Treat these as a snack, not a meal — portions are small, and most travellers order two.
Bæjarins Beztu and the Rest of the Harbour
The harbour district around Geirsgata and Ægisgata is where quick food is easiest to plan. The stands on Tryggvagata sit a five-minute walk from the Harpa concert hall and the Kolaportið flea market, which runs at weekends and sells a cheap plate of rye bread with smoked lamb or herring. If you are staying in the Miðborg or Skólavörðustígur area, all of this is within fifteen minutes on foot, which matters more than saving a few hundred krónur on a bus fare.
For something more substantial but still fast, look at the small fish-and-chips counters near the old harbour. They use fresh catch and cost noticeably less than a sit-down seafood dinner on the same street. I would book a hotel in postcode 101, ideally between Laugavegur and the harbour, because it puts the hot dog stands, the flea market and the main bus routes within a short walk. Guests on the site are overwhelmingly searching Reykjavík first, and for good reason.
Bakeries, Petrol Stations and the Ring Road
Outside the capital, the petrol station is the real street-food network. N1 and Olís stations along Route 1 carry hot dogs, soups and a bakery counter, and they are the dependable stop between Vík and Höfn, where services thin out. A bowl of lamb soup and a skyr cake at a station café is a normal, honest lunch for a driver. The same applies on the Snæfellsnes peninsula, where the towns are small and opening hours are seasonal.
In Reykjavík, the old bakery tradition is stronger than the fast-food one. Sandholt on Laugavegur and the smaller bakeries around Hlemmur sell warm cinnamon buns and rúgbrauð through the morning; go before ten if you want the first bake. Best months for this kind of eating are May to September, when the harbour stalls keep long hours and the Ring Road stations are fully staffed. In January, expect shorter opening times and check ahead before driving far for a specific counter.
What to Skip and How to Plan Around Food
Skip the inflated downtown burger chains aimed squarely at visitors, and skip anything sold as a "traditional Viking platter" in the tourist core — it is expensive and rarely representative. Also skip the temptation to buy supermarket hot dogs and boil them in a hotel kettle; Icelandic pylsur are best grilled or steamed properly, and the bun matters as much as the meat. Instead, spend the money on a proper lunch at a harbour counter and keep dinner simple.
Plan food around where you sleep. If you are in 101, walk everywhere; if you are out near Kringlan or in Hafnarfjörður, budget for a car or the Strætó bus. Book accommodation early for June to August, when Reykjavík fills up and the ring-road towns have limited rooms. Late September and early May offer a good balance of long daylight, open kitchens and quieter streets. For a first trip, I would book a small hotel in central Reykjavík and take the food as you find it.
Good to know
Questions, answered
What is on an Icelandic hot dog?
A lamb-and-pork sausage in a steamed bun with raw onion, crispy fried onion, ketchup, sweet brown mustard and remoulade. Order "eina með öllu" for the full version, or ask for it plain to taste the meat first.
Is street food in Iceland expensive?
A hot dog is one of the cheapest hot meals in the country and is priced in the low hundreds of krónur. Petrol-station soup and bakery pastries sit in the mid range. Sit-down dinners in central Reykjavík cost far more, so lunch from a stand or counter saves real money.
Where should I stay in Reykjavík for easy food access?
Postcode 101, between Laugavegur and the old harbour, puts the Tryggvagata hot dog stands, the Kolaportið market, bakeries and main bus routes within a short walk. Book early for June to August, when central rooms fill up.
Doing good is the business: every booking through Stay Iceland funds one verified tonne of carbon removal — same room, same price, no markup.
Search stays