If you are curious about where do locals eat in Reykjavík, ask around, and the hot dog stand comes up first. From there, the list gets more specific, moving toward small plate restaurants, tapas counters, and a new Italian spot downtown.

This guide skips the tourist menus and lays out the places residents actually choose, most within walking distance of Exeter Hotel. You will find wine bars, casual counters, and sit-down dinners across a few downtown blocks. A few practical tips for eating well round out the list below.

Quick Bites Locals Actually Order

Reykjavík's famous hot dog stand is one of the first things visitors hear about. Bæjarins Beztu Pylsur, the name of the stand itself, has sold the same lamb, pork, and beef hot dogs on Tryggvagata since 1937. Locals still stop by for one, even after living in the city for years.

Most people order it "with everything" (pylsur með öllu), which means every topping goes on top. That includes raw onion, crispy fried onion, sweet mustard, a creamy sauce called remoulade, and a ketchup made with apples instead of tomatoes.

Anyone craving something more filling can head just across the street to Reykjavik Fish Restaurant on Tryggvagata 8, a steady favorite among locals looking for a fast, fresh lunch by the harbor. The cod is caught daily, fried to a perfect crisp, and served alongside classic fries and thick tartar sauce.

Top 8 Local Restaurant Recommendations in Reykjavík

Many people plan their meals before they even land in Reykjavík. They want to know where to find the city's best food, and the right spot depends on personal taste. Recommendations from a local Icelander make that search easier than guesswork alone.

1. Skál: For Seasonal Icelandic Plates

Reykjavík Grapevine has called Skál the city's best restaurant more than once, and the seasonal menu shows why. Located on Njálsgata, a short walk from Laugavegur, the kitchen builds small plates from fresh Icelandic seafood, lamb, and vegetables. Each course pairs with natural wine served by the glass.

Because dishes shift with the seasons, the menu features whatever the kitchen finds freshest that week. No two visits look quite the same, since dishes never stay fixed for long. Book two to three days in advance, since weekend tables fill up fast.

2. Skreið: For Basque-Style Tapas

A daily happy hour turns Skreið into a favorite after-work stop on Laugavegur 4. The kitchen serves Basque-style tapas, small shared plates built for a slow evening over wine. Locals often linger here well past their first round.

One dish has never left the menu since the restaurant opened: manchego cheese served with honey and walnuts. Crispy croquettes and a soft, fluffy tortilla round out the regular lineup. Its wine list leans toward natural, Spanish bottles that pair well with the food.

3. Osteria Bari: For Italian Favorites

Downtown Reykjavík gained a fresh favorite when Bari (often called Osteria Bari) opened on Hafnarstræti 9 in December 2025. The kitchen keeps things simple, in true Italian osteria style, with small, rich dishes meant to be shared across the table over great wine. House-made meatballs in spicy arrabbiata sauce and slow-cooked Osso Buco quickly became the standout orders.

A short list of seasonal wines rounds out the menu alongside a widely praised calamari fritti starter. A casual weekend brunch was added to the lineup not long after opening. Walk-ins are welcome, and the cozy space still flies under the radar for most passing tourists.

4. Sushi Social: For Japanese Fusion

Japanese technique meets South American flavor at Sushi Social on Þingholtsstræti 5. Fresh Icelandic fish anchors a menu that spans rolls, sashimi, and grilled mains from across two continents. The room stays lively, built more for a fun night out than a quiet dinner.

Groups often split a sushi boat, a shared platter built for the table rather than one plate per person. Steak platters offer a heartier option for anyone skipping raw fish. Book ahead on weekends, since rooms fill up fast.

5. Kastrup: For Danish Classics 

Tucked away from Reykjavík's busiest streets, Kastrup keeps its dining room calm even on weekends. The kitchen serves Danish-style smørrebrød, open-faced sandwiches piled onto dense rye bread, alongside steak frites for something heartier. Locals treat it as a reliable spot for a proper, unhurried dinner.

Despite the quiet setting, tables still fill up fast on weekend nights. Reservations help secure a spot before the evening rush begins. Regulars often start with the roast beef smørrebrød or the salmon tartare.

6. Tapas Barinn: For a Classic Tapas Night

For more than 25 years, Tapas Barinn has served Icelandic tapas on Vesturgata 3b. Small plates like langoustine tails, lamb fillet with licorice sauce, and salt cod with chorizo define the kitchen's style. Sharing several dishes across the table beats ordering just one.

Its long track record keeps the restaurant busy most nights of the week. Booking ahead is worth the effort, especially for larger groups. The seven-plate set menu remains the most popular way to sample the kitchen.

7. Matarkjallarinn: For Grilled Dishes and Cocktails

A 160-year-old building on Aðalstræti 2 houses Matarkjallarinn's grill and cocktail menu. Grilled meat and fish share the spotlight with a full drinks list, while live piano plays on busier evenings. The historic cellar setting suits a slower dinner more than the livelier spots nearby.

Limited seating comes with the territory in a building this old. Weekend tables disappear quickly, so plan ahead if the cellar interests you. Cocktails get as much attention here as the food itself.

8. Apotek Kitchen and Bar: For Modern Icelandic Cuisine

Apotek Kitchen and Bar turns a former pharmacy on Austurstræti 16 into a modern restaurant. Icelandic and European dishes share the menu with an Argentine grill, giving the kitchen a wide range. The old pharmacy theme still shows up in the cocktail list.

Staff can share stories about the building's past for guests who ask. Its central location makes it an easy stop between other downtown plans. This mix of casual and formal works equally well for lunch or dinner.

Where to Stay and Eat Near the Reykjavík Harbor

Exeter Hotel is at Tryggvagata 12, close to the water and several restaurants in Reykjavík harbor. Most of these spots sit within a 5- to 15-minute walk. The hotel's own restaurant, Le Kock, serves a burger that regulars rank among the best in the city. Tail, the bar next door, pours the cocktails for a slower evening.

Deig, the in-house bakery, opens at 7 am for coffee and bagel sandwiches, a quiet start before exploring Reykjavik's hidden gems. Staying this close to the harbor means less time in taxis and more time eating.

Stay Close to Where Locals Eat in Reykjavík

Reykjavík's food scene rewards people who skip the guidebook picks and ask a local instead. Once you know where locals actually eat, the city opens up in a new way.  Every spot on this list sits close enough downtown to visit in one trip.

Exeter Hotel puts guests in the middle of that map, close to the harbor and a short walk from Laugavegur. This makes it a solid answer for anyone researching where to stay in Reykjavik for first-timers. Staying downtown means less time planning logistics and more time actually eating.

FAQs

Do you need to tip at restaurants in Reykjavík?

Tipping is not expected in Reykjavík, since service charges are already built into menu prices. A small tip is welcome when service stands out, but it is never required.

Is eating out in Reykjavík expensive?

Reykjavík dining runs higher than in most European cities, with a casual dinner often costing 3,000 to 6,000 ISK (approx. $24 to $48 USD) per person.

What traditional Icelandic dishes should I try in Reykjavík?

Lamb, fresh cod, and skyr appear on most Reykjavík menus, alongside the classic Icelandic hot dog. Adventurous eaters can also try fermented shark or smoked puffin at select restaurants.

Can I walk to Reykjavík's best restaurants, or do I need a car?

Most downtown restaurants sit within a 5- to 15-minute walk of each other. Exeter Hotel's location on Tryggvagata puts guests close to this entire stretch, with no car needed.

Are there vegetarian or vegan options at Reykjavík's local restaurants?

Most Reykjavík restaurants, including Skál and Skreið, offer vegetarian small plates alongside their seafood and meat dishes. Dedicated vegan spots also operate throughout downtown Reykjavík.