Reykjavic on the Cheap: How to Eat and Drink for Less Than $25 a Day

Reykjavik (Thinkstock)

When I booked my February trip to Iceland, the sparsely populated Nordic island, I was looking for a way to see the country’s striking landscape, to chase the Northern Lights, and to soak in the geothermal hot springs without battling the hordes of tourists that descend every summer.

I was also hoping to save some króna (a.k.a., ISK, Iceland’s currency).

Iceland is no longer prohibitively pricey – the country’s 2008 currency crisis took care of that, and the exchange rate for Americans (about 133 ISK to the dollar) is still good even after its economic recovery. And there are good U.S.-based flight deals to be found: Recently, WOW air promoted $99 one-way trips from Boston and Baltimore. While those sold out quickly, a spokesperson for WOW says, “We are currently looking into increasing the availability of similar fares, especially for the fall of 2015.” Plus, if you’re willing to give up the midnight sun of summer, in winter, things like lodging and car rentals can be a whole lot more affordable.

Still, in any season travelers can be dinged by high-priced food and drink. According to data compiled by Numbeo.com, restaurant prices in Reykjavik are over 8% higher than in New York City. Here are tips for fueling up in Iceland without emptying your wallet.

Related: Europe’s New Shopping Hotspot: Reykjavik (Seriously!)

Chow down

A famous Reykjavik hot dog. (Tomi Knuutila/Flickr)

One of the locals’ favorite ways to dine inexpensively? Devouring hot dogs.

Before you scoff, know this: The Icelandic hot dog is a source of serious pride for residents and has been consumed by those including former U.S. president Bill Clinton, who famously enjoyed a dog from the country’s most well-known stand, Bæjarins beztu pylsur (The Best Hot Dog in Town). For 400 ISK, or around $3, you get a dog with the works (and for most people it goes down a whole lot easier than other famous regional fare like fermented shark or sheep’s head).

Locals also love their low-priced noodles. Noodle Station is a favorite, offering large, filling bowls of beef or chicken ramen for around $8, vegetable for around $6. Kabob shops offer decent deals; I was sated for hours after making lunch of a huge $8.60 falafel wrap at Durum. And All-you-can-eat buffets, particularly for lunch, are a frequent affair. One local favorite is Sjavarbarinn, a seafood restaurant offering endless fish, soup and salad for 1600 ISK.

Other relatively cheap dining venues to enjoy in Reykjavik: Svarta Kaffid, where dinner is a very hearty $11 soup in an enormous bread bowl; Meze, featuring $8 musakka and $6 tabbouleh; and Prikid, billed as Iceland’s oldest café and serving massive burgers (and veggie burgers) with a mess of fries for around $8, plus sizable breakfasts for the same. (For a healthy, simple breakfast, Skyr, a ubiquitous yogurt product, will do for a few bucks.)

On average, my daily food bill was less than $25 (not counting coffee drinks). Not extremely cheap, but not enough to take away my appetite.

Booze up

Happy hour! (Rebecca Stropoli)

The country has an interesting history with alcohol. Prohibition was lifted in 1922, but beer remained illegal until 1989. Now, booze is taxed heavily, so drinking in Iceland can break the bank.

If you’re looking to join in Reykjavik’s rowdy weekend nightlife, your buzz may be killed by $14 cocktails and $10 pints. It’s known among locals that the best (read: cheapest) way to enjoy the club scene is to have your first drinks at home.

As a visitor, you can take advantage of the Duty Free shop at the Keflavik airport to save on goods including booze. Keflavik offers tax and duty free items for both arrivals and departures; signs boast of a 50 percent discount compared to buying retail in Reykjavik. Forget that $10 glass of wine at the city bar; buy a $10 bottle at the airport instead. (The Keflavik customs site details all the regulations.)

City watering holes also feature daily happy hours in which $3 beers and $5 wines are standard. (Happy hours cater to the mellower set, as weekend nightlife doesn’t get going until after midnight.) I particularly enjoyed the vibe at Tiu Dropar, a cozy, candlelit space where two chardonnays only set me back $7, and I got to hear a female pianist sing a hauntingly beautiful version of “All About That Bass.”

Related: Searching for Bjork and Dancing with Lebowski — the Perfect Thursday Night in Reykjavic

Drink the water

Iceland waterworks (Ben Ferenchak/Flickr)

This may seem like a basic tip, but as proud as Icelanders are of their hot dogs, they also praise their tap water as some of the best and purest in the world. Don’t even think about buying bottled – fill up your own container with some of the pure stuff for day trips and hikes.

Keep this in mind throughout your Iceland trip – some of the best the country has to offer (from the scenery to the H2O) is entirely free.

Related: This Is Why Iceland Is the Ultimate Stopover Location

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