Understanding Icelandic Food Costs
Iceland, the land of fire and ice, breathtaking landscapes, and, let’s face it, eye-watering prices. The stunning scenery and unique experiences often come with a hefty price tag, and the cost of food is a major concern for budget travelers. The rumors are true: eating out every day in Iceland can quickly drain your travel funds. However, don’t despair! It *is* possible to enjoy the incredible food culture of Iceland without needing to remortgage your house. With a little planning and some insider knowledge, you can navigate the Icelandic culinary scene and discover delicious and affordable options. This article will serve as your guide to eating cheaply in Iceland, proving that you can have an amazing trip without sacrificing your budget or your taste buds. We’ll cover grocery stores, affordable restaurants, street food delights, self-catering strategies, and even how to make the most of happy hour deals, ensuring your journey is as delicious as it is unforgettable. Make sure to check the latest currency exchange rates to get the most out of your money.
Before diving into the specifics of where to find affordable food, it’s important to understand why Icelandic food prices are generally higher than what you might be used to. Several factors contribute to this:
First, Iceland relies heavily on imports, especially for fresh produce. The challenging climate makes large-scale agriculture difficult, meaning a significant portion of fruits, vegetables, and even some meats need to be brought in from other countries. The cost of transportation and import taxes adds significantly to the final price.
Second, Iceland has relatively high labor costs. Fair wages and good working conditions are essential, but they also contribute to the overall operating expenses of restaurants and food businesses.
Third, Iceland applies a Value Added Tax (VAT) to goods and services, including food. This tax contributes to the higher prices you see on menus and in grocery stores.
Finally, the limited local agriculture, as mentioned earlier, means that there’s less domestic competition to drive prices down. While there’s a growing movement towards local and sustainable farming, it’s still not enough to significantly impact overall food prices.
As a general guideline, expect to pay significantly more for a casual restaurant meal than you would in many other European countries or North America. Preparing meals at your accommodation, snacking smart, and being selective when eating out are crucial tactics to manage your expenses effectively.
Grocery Stores: Your Budget’s Best Friend
If you’re serious about saving money on food in Iceland, grocery stores will become your new best friends. Forget the notion that you’ll be eating nothing but dry crackers and instant noodles. By strategically shopping at the right stores and choosing the right products, you can eat well and save a substantial amount of money.
Iceland offers a few major supermarket chains, each with varying price points. For the absolute lowest prices, head to Bonus (Bónus). Easily recognizable by its bright yellow storefront and cartoon pig logo, Bonus is a no-frills discount supermarket that offers a wide range of basic food items at incredibly competitive prices. You can find staples like bread, cheese, sandwich meats, pasta, rice, and canned goods here, as well as some fruits and vegetables. While the selection might not be the most extensive, it’s perfect for stocking up on essentials.
Another good option is Kronan. Kronan is similar to Bonus in terms of price, but it often boasts a slightly wider selection of products. You might find a few more organic options or a larger variety of international foods. It is an excellent alternative if Bonus doesn’t have what you’re looking for.
Netto is a larger supermarket chain with even more variety. While the prices are generally a bit higher than at Bonus and Kronan, Netto often runs promotions and discounts that can make it a worthwhile option.
When planning your shopping trip, be sure to check the opening hours of the supermarkets, as they can vary significantly, especially outside of Reykjavik.
So, what should you buy at the grocery store to save money? Here are some budget-friendly recommendations:
- Skyr: This traditional Icelandic yogurt is a protein powerhouse and incredibly filling. It’s a great option for breakfast, lunch, or a snack.
- Bread, Cheese, and Sandwich Meats: Make your own sandwiches for day trips and hikes.
- Fruits (Apples, Bananas): While most fruits are imported, apples and bananas are generally among the most affordable options.
- Vegetables (Carrots, Potatoes): Similarly, carrots and potatoes are usually the most budget-friendly vegetable choices.
- Instant Noodles and Soups: These are quick, easy, and cheap for those times when you’re short on time or energy.
- Pasta and Sauces: Pasta is a versatile and inexpensive base for many meals.
- Breakfast Items (Oatmeal, Granola): Start your day with a filling and affordable breakfast.
- Icelandic Chocolate: Don’t forget to indulge in some Icelandic chocolate! It’s surprisingly affordable and a delicious treat.
- Explore “Happy Hour” discounts: Supermarkets occasionally offer discounted prices on ready-made meals during their “happy hour” periods. Check around for these opportunities.
Affordable Restaurants and Eateries: Taste of Iceland Without the Cost
While cooking your own meals will undoubtedly save you money, you’ll probably want to experience Icelandic cuisine at least a few times during your trip. Fortunately, there are plenty of affordable restaurants and eateries where you can sample local flavors without emptying your wallet.
One of the most popular options is Icelandic Street Food in Reykjavik. This restaurant is known for its hearty and affordable traditional soups served in bread bowls. You can also try plokkfiskur (fish stew), lamb soup, and other classic Icelandic snacks.
No trip to Iceland is complete without trying a hot dog from Baejarins Beztu Pylsur in Reykjavik. This iconic hot dog stand has been serving up delicious and affordable hot dogs for decades. Order an “eina med ollu” (one with everything) to experience the full Icelandic hot dog experience, complete with crispy fried onions, sweet mustard, and remoulade.
Noodle Stations are also a good option for a quick and affordable meal. These restaurants offer a variety of noodle soups that are both filling and flavorful.
Many kaffitar (coffee shops) offer soup and sandwich deals that are a more affordable alternative to full-fledged restaurants. Look for cafes advertising Dagstilboð (daily specials). These often include soups or simple meals at discounted prices.
Always be on the lookout for Happy Hour. Many restaurants and bars offer discounts on food and drinks during happy hour, typically between four and seven in the evening. Several apps and websites dedicated to listing happy hour deals in Reykjavik and other towns can help you find the best bargains.
Food halls and markets often provide a wide range of culinary options at diverse price points. This allows you to select the cheapest option available to you.
Pizza places are generally affordable, and many offer lunch specials. If you’re traveling outside of Reykjavik, consider dining at restaurants in smaller towns, as prices can sometimes be slightly lower.
Self-Catering: The Ultimate Budget Hack
Self-catering is the single most effective way to save money on food in Iceland. By cooking your own meals, you have complete control over your spending and can avoid the high prices of restaurants.
The key to successful self-catering is choosing accommodations with a kitchen or kitchenette. Many guesthouses, apartments, and even some hostels offer cooking facilities.
Here are some tips for making the most of your self-catering experience:
- Plan Your Meals: Before you head to the grocery store, create a meal plan for the next few days. This will help you avoid impulse buys and ensure that you have all the ingredients you need.
- Cook in Bulk: Prepare large batches of meals that you can eat over several days. This will save you time and effort in the long run.
- Pack Reusable Containers: Bring reusable containers so you can pack leftovers for lunches and snacks.
- Bring Basic Spices: Packing basic spices from home can save you money, as buying individual spice jars in Iceland can be expensive.
- Picnics are your friend: Pack lunches for day trips and hikes.
- Utilize Camping Stoves: If you’re camping, bring a portable camping stove to cook your own meals outdoors.
Drinks on a Budget: Staying Hydrated Without Breaking the Bank
It’s not just food that can be expensive in Iceland; drinks can also add up quickly. Here’s how to stay hydrated without draining your wallet:
- Tap Water is Your Savior: The tap water in Iceland is incredibly clean and delicious. Bring a reusable water bottle and refill it throughout the day.
- Alcohol is Expensive: Alcohol is notoriously expensive in Iceland. If you plan to drink, consider buying duty-free alcohol at the airport upon arrival. Alternatively, reduce your alcohol consumption during your trip.
- Coffee and Tea: Brew your own coffee and tea at your accommodation.
Things to Avoid (To Save Money)
To maximize your savings, avoid these common money traps:
- Fine Dining: While a splurge meal might be tempting, fine dining restaurants will quickly blow your budget.
- Ordering Appetizers and Desserts: Focus on the main course and skip the extras.
- Eating in Tourist Hotspots: Restaurants near popular attractions are often overpriced. Venture a few blocks away to find more affordable options.
- Buying Pre-packaged and Convenience Foods: Grocery stores offer much better value for your money.
Additional Tips and Tricks for the Savvy Traveler
- Pack Snacks from Home: Bringing non-perishable snacks from home can help you avoid buying expensive snacks on the go.
- Look for Deals and Coupons: Check for online discounts or travel deals before your trip.
- Consider Food Sharing: If traveling with others, split the cost of larger meals or ingredients.
- Be Flexible: Be open to trying different types of food and exploring local markets.
- Investigate free food tours/offerings: You can sometimes sample regional foods during a free trip.
Conclusion: A Delicious and Affordable Icelandic Adventure Awaits
Eating cheaply in Iceland is definitely possible, although it takes some planning, resourcefulness, and a willingness to embrace self-catering. By utilizing grocery stores, seeking out affordable restaurants, taking advantage of happy hour deals, and packing snacks, you can significantly reduce your food costs without sacrificing the enjoyment of your trip. Remember, the key is to be mindful of your spending, prioritize experiences over fancy meals, and be open to trying new things. Don’t let the rumors of high food prices deter you from experiencing the magic of Iceland. Embrace these tips, embark on your adventure, and savor every moment, knowing that you’re exploring this incredible country without breaking the bank. You truly can enjoy the best that Iceland has to offer, even on a budget!
