Are you travelling on a budget in Iceland? It is possible to eat on a smaller budget in Reykjavik and there are many option for cheap eats.

DAY #1 of cheap eating:

Cheap breakfast in Reykjavik Iceland
Average amount spent: 800 ISK
Most travelers will discover this bakery by following their noses, and once you arrive, you’ll understand why. One of Braud & Co bakery is housed in a colorful building that draws patrons in with its creative character and mouth-watering aromas. This bakery offers some of the city's best home-baked cinnamon buns, morning breads, pretzels, and pastries. There isn't much seating inside, but the warm breads are not to be missed and the coffee refills are F-R-E-E. The bakery is now in 6 places in Reykjavik.
LUNCH: Kaffi Loki
Average amount spent: 2.500 ISK
For an authentic Icelandic meal, a trip to Cafe Loki is a must-do. Right across from the Hallgrímskirkja, it’s the perfect rest stop for a quick bite to eat and a cup of coffee or Icelandic herbal tea. On a rainy or windy day, the two-story cafe will also get you a gorgeous, photo-ready view of Reykjavik’s iconic chapel. The menu at Cafe Loki ranges in size and selection, but we recommend getting one of the sample plates, which gives you a perfect helping of three different Icelandic dishes. From meat soup and mashed fish to their homemade rye bread ice cream, you’ll get a well-rounded taste of Iceland without breaking the bank. Menu at Café Loki - Traditional Icelandic Food.
DINNER: Hamborgarabúllan 
Average amount spent: 1.990 ISK
Less than one block from the Loft HI Hostel is what we’d like to call Laugavegur’s most hidden gem. Tucked away behind the bar at B5 nightclub, this divey burger shop serves up a delicious helping of burger and fries, and at a reasonable price by Reykjavik standards. The relaxed and friendly atmosphere makes this a perfectly casual sit-down meal for any time of day. 
DRINKS: Loft Hostel
Average amount spent: 600 ISK/drink
The Loft Hostel isn’t only the best hostel in Iceland. It also offers one of the best happy hour you’ll find in the city! With modern decor and regular events including paint nights, watch parties and concerts, Loft is a favorite among travelers and city locals alike. For budget travelers who want to enjoy a pint of brew while soaking in the lovely views of central Reykjavik, the hostel’s rooftop bar and outdoor patio will be your hangout haven. 

DAY #2 in cheap eating:

Average amount spent: 900 ISK
Situated just across the street from the Loft HI Hostel, this bright magenta building is hard to miss when you’re looking for the perfect morning pick-me-up. Kaffitár offers a wide variety of coffees, teas, croissants and other traditional cafe treats, perfect for snacking on before you start exploring Reykjavik. There’s plenty of seating and (more importantly) free WiFi so kick back, relax, and stay awhile before heading off to your next stop.
LUNCH: Bæjarins Bestu hot dog - The best hot dog in town
Average amount spent: 600 ISK
Reykjavik locals swear the city's best hot dogs are found in this food truck, and for good reason. Use the quintessential phrase “eina með öllu” (one with everything) to get one of their famous franks topped with sweet-spiced mustard, ketchup and crunchy onions. Tip to the wise: order multiple dogs and a beverage to make this a fully filling meal. 
DINNER: Svarta Kaffið
Average amount spent: 1.800 ISK
After spending a day outside in the land of ice, a craving for comfort food will sure be on your wish-list. Svarta Kaffið was made with the indecisive traveler in mind, offering only two soup options– meat or veggie– each day. Their main selling point? Having your savory meal delivered in large bread roll with butter on the side. Opt-in for a window seat and a pint of Gull bear with your meal to experience ultimate hygge in Iceland’s capital city.
LATE-NIGHT SNACK: Reykjavik Chips
Average amount spent: 1.000 ISK
With over 10 dipping sauce options, choosing which to try will be your hardest decision at this spot. The seating is comfy and modern and the tables were strategically designed to hold the funky chip containers. The cool vibe, funky decor, and trendy music is the perfect cherry on top of a quick trip to Reykjavik. 
Leila Khadrane is a Social Media & Content coordinator working for Hostelling International USA.
Leila visited Iceland and she loves to share, teach, inspire and promote travel tips from her stay in the country.