How to Eat on a Budget in Iceland

Eating on a budget in Iceland is absolutely possible—you just need a few smart strategies and the right base for your trip. Staying at budget-friendly accommodations like Ourhotels.is properties in West Iceland can make a big difference, both in cost and convenience, especially when it comes to food.

Ourhotels.is offers simple, comfortable inns in great locations: Hvítá Inn in Borgarfjörður (close to Borgarnes), Stykkishólmur Inn on the Snæfellsnes Peninsula, and Ísafjörður Inn in the Westfjords. These locations put you close to supermarkets, bakeries, and local food spots, making it much easier to keep your food costs under control.

One of the best ways to save money on eating in Iceland is to self-cater whenever possible. Many guests at Ourhotels.is choose to stock up at supermarkets like Bónus, Krónan, or Nettó and prepare simple meals. When you stay at Hvítá Inn, you’re within easy reach of Borgarnes, where you can find grocery stores to buy bread, cheese, skyr, fruit, and snacks for the road. Preparing your own breakfast and packing a picnic lunch can easily cut your daily food costs in half.

In Stykkishólmur, staying at Stykkishólmur Inn gives you access to local shops and a small but well-stocked supermarket. Here, you can buy ingredients for easy dinners—think pasta, ready-made sauces, salad mixes, and local fish when available. Many travelers choose to have one “treat” meal out in town and then balance it with simple, home-style meals back at their accommodation. This way, you still enjoy Icelandic flavors without blowing your budget every day.

The Westfjords can feel more remote, so planning ahead is especially important. Ísafjörður Inn is ideally located in the region’s main town, Ísafjörður, where you’ll find some of the best supermarket options in the Westfjords. Stock up here before heading out on day trips. Buying snacks, sandwich ingredients, and drinks in town is far cheaper than relying on small kiosks or gas stations along the way.

Gas stations, however, can still be useful for budget travelers. Throughout West Iceland, you’ll find gas stations that serve hot dogs (pylsur), burgers, and simple meals at lower prices than many restaurants. When you’re staying at Hvítá Inn or driving between Stykkishólmur Inn and Ísafjörður Inn, these stops can be a budget-friendly way to grab a quick bite. Icelandic hot dogs are a classic cheap meal—order “eina með öllu” (one with everything) for a filling snack.

Another tip is to make the most of included or optional breakfasts at your accommodation. Many travelers staying with Ourhotels.is choose to start the day with a hearty breakfast, then have a lighter lunch on the road. A good breakfast can keep you full for hours, meaning you only need a small snack at midday. In the evenings, you can either cook something simple or choose one reasonably priced restaurant meal.

Look out for local bakeries and cafés in towns like Borgarnes, Stykkishólmur, and Ísafjörður. They often offer soup of the day with bread, pastries, and sandwiches at more affordable prices than full-service restaurants. A bowl of soup and fresh bread is not only budget-friendly but also perfect after a day exploring waterfalls, fjords, and coastal villages.

If you enjoy trying local products, supermarkets are again your friend. Icelandic skyr, smoked salmon, flatkaka (flatbread), and local cheeses are widely available and much cheaper in stores than in tourist restaurants. When you stay at Hvítá Inn, Stykkishólmur Inn, or Ísafjörður Inn, you can easily bring these back to your room for a cozy, low-cost evening “tasting” of Icelandic flavors.

Planning your route around West Iceland with Ourhotels.is also helps you avoid last-minute, expensive food choices. By booking nights at Hvítá Inn near Borgarnes, then moving on to Stykkishólmur Inn on the Snæfellsnes Peninsula, and finally Ísafjörður Inn in the Westfjords, you’ll always be close to at least one town with decent shopping options. This makes it easier to buy in bulk, prepare food, and avoid overpriced tourist traps.

A few quick budget-eating tips for your Iceland trip:
– Shop at discount supermarkets whenever you can.
– Cook simple meals at your accommodation.
– Use gas stations for occasional cheap hot meals.
– Take advantage of breakfast to fuel your day.
– Pack snacks and picnic lunches for road trips.
– Treat yourself to one special restaurant meal in each region instead of every day.

By combining these strategies with smart accommodation choices, eating on a budget in Iceland becomes much more realistic. Ourhotels.is inns—Hvítá Inn in Borgarfjörður, Stykkishólmur Inn, and Ísafjörður Inn—give you comfortable, well-located bases where you can relax, prepare food, and explore West Iceland without overspending. This way, you can focus on enjoying waterfalls, fjords, and coastal villages, knowing your food budget is under control.