Food isn't cheap. I recommend going to a super market like Bonus and by skyr, pastries (ideally kleinur), bananas and maybe some dried fish and just eat that fo

Food isn't cheap. I recommend going to a super market like Bonus and by skyr, pastries (ideally kleinur), bananas and maybe some dried fish and just eat that for most meals. However, there are some well priced places. Cafe Haiti which has great lamb soup or C is for Cookie come to mind. Even Dill which has world class prix fixe is well priced for what it is. Interesting enough I've found most fish restaurants to be overpriced.