15 Best Restaurants in Reykjanes Peninsula and the South Coast (with the Golden Circle), Iceland

Ölverk Pizza and Brewery

$$ Fodor's choice

Tucked away in this small town is a local brewery that uses geothermal energy to make quirky and tasty beers and eclectic and delicious wood-fired pizzas. The selection of draft beers changes depending on what concoction these master brewers made that week, but expect to find very creative ingredients—many of which are local. 

Breiðumörk 2, Hveragerði, South, 810, Iceland
354-483–3030
Known For
  • the Ölverk beer flight
  • pretzel with beer cheese dip
  • lots of unique pizza toppings (if you're adventurous, try the one with bananas)

Pallett

$$ Fodor's choice

Tucked away in the sleepy fishing town of Hafnarfjörður, Pallett looks at times like an ad from a 1970s issue of Vogue with its jungle of houseplants, a rotary telephone at the counter, and cassette player blaring in the background. But this is more than just a hipster hangout: the food is hearty, wholesome, and inherently British (think freshly baked scones with homemade jam) and the coffee is made from award-winning beans. Pálmar Þór, co-owner and resident coffee guru, is a twice-national barista champion and makes a first-class Irish coffee that'll leave you feeling so serene, you might just want to stay in the 1970s a little longer.

Strandgata 75, Hafnarfjörður, Capital Region, IS-220, Iceland
354-571–4144
Known For
  • heaven for coffee nerds
  • part of the slow living movement
  • only place in Iceland that does mince pies

Bryggjan

$$

This little café in an old netting factory by the harbor is famous for lobster soup and homemade cakes. Loved by locals and tourists alike, Bryggjan is adorned with flying buoys and framed photos from the town's older days.

Miðgarður 2, Grindavík, Southern Peninsula, 240, Iceland
354-426–7100
Known For
  • delicious lobster soup
  • very creamy cakes
  • fishing village feel

Recommended Fodor's Video

Fish and Chips

$$

Just outside the Secret Lagoon you will find a small shed serving delicious fish-and-chips. You can take them to go, sit out front at a picnic table if the weather is nice, or escape the Icelandic wind and cold and eat standing up in the warm and cozy shed. The shed's opening hours and days can be a bit erratic, so check on their Facebook page before you stop by. 

Geysir Glíma

$$

This popular lunch spot serves traditional Icelandic hot dishes, like fish and lamb stews, just a few meters from its namesake Golden Circle sight. They also offer pastries, pizza, and sandwiches, so the whole family should be able to find something to their taste.

Biskupstungubraut, Haukadalur, South, Iceland
354-481–3003
Known For
  • hot-spring bread
  • traditional Icelandic fish stew
  • high-end canteen vibe
Restaurants Details
Rate Includes: No dinner

Hjá Höllu

$$

This breakfast-and-lunch spot in Grindavík started in Halla's kitchen at home. Her specialty is fresh, healthy daily to-go bags, which are filled with snacks, fresh juices, a hot lunch, and something sweet—perfect for a long day of sightseeing.

Ísbúð Vesturbæjar

$$

In any weather—even the most brutal snowstorm—Icelanders will meet their friends for an ice cream. Ísbúð Vesturbæjar is a famous family-owned ice-cream parlor with one of the best Bragðarefur (blended mix of crushed-up candy and vanilla soft-serve) in all of Iceland.

Fjarðargata 19, Hafnarfjörður, Capital Region, 220, Iceland
552–3390
Known For
  • old-fashioned ice cream (creamier than other Icelandic ice cream)
  • large portions
  • must-try Bragðarefur flavor

Kanslarinn

$$

Simply put, Kanslarinn is like a classic American roadside diner with an Icelandic country twist. The space itself is not intended to impress, but their classic diner dishes and Icelandic favorites consistently deliver.

Dynskálar 10c, Hella, South, 850, Iceland
354-487–5100
Known For
  • meat soup the way Icelanders like it
  • free Wi-Fi
  • local delicacy of pepper steak from horsemeat

Langbest

$$

For over 20 years, Langbest has fed the citizens of Reykjanesbær to great acclaim. This is a must-stop for some of the region's best pizza, but they also serve hamburgers, steaks, and more.

Keilisbraut, Reykjanesbær, Southern Peninsula, 235, Iceland
354-421–4777
Known For
  • signature béarnaise sauce that locals eat with their pizza
  • plenty of vegan and vegetarian options
  • impressive pizza

Mathöll Suðurlands

$$

High-end food halls are a big trend in Iceland—and Mathöll Suðurlands is right up there with the best of them. Part of the Greenhouse hotel and shopping center, it offers a number of established and up-and-coming eateries. Don't miss the delectable kimchi-smothered chicken burgers at Yuzu or, for the vegans, the stellar mushroom open-faced sandwich from Hipstur. 

Austurmörk 6, Hveragerði, South, 810, Iceland
464–7336
Known For
  • Yuzu's kimchi-smothered chicken burgers
  • cocktails at the Nýlendubarinn
  • option to have Asian-style fried noodles, fresh ice cream, and a few tacos for dinner

Minilik Resturant

$$

In an unassuming summer cottage at the town limits of Flúðir, you will find traditional Ethiopian specialties cooked and served by an Ethiopian-Icelandic couple. Eating spicy food with your hands surrounded by Ethiopian art is a real treat after a full day of sightseeing in the intense Icelandic terrain. Reservations are highly recommended. 

Skeiða- og Hrunamannavegur, Selfoss, South, Iceland
354-846–9798
Known For
  • plenty of vegetarian options
  • ceremonial Ethiopian coffee
  • only Ethiopian restaurant in Iceland
Restaurants Details
Rate Includes: Closed Mon.

Olsen Olsen

$$

The people of Keflavík talk about Olsen Olsen like it's a family member—its legend precedes it. Grab a burger and a Coke and get a taste of what it was like when the U.S. Army introduced Icelanders to rock 'n' roll and fast food.

Hafnargata 62, Reykjanesbær, Southern Peninsula, 230, Iceland
421–4457
Known For
  • affordable burgers
  • the Olsen Olsen sandwich (bacon and baked beans)
  • location in the heart of Keflavík

Skjól

$$

This laid-back and charming restaurant at a campground near Geysir serves excellent pizzas and burgers. They also have a selection of beer, as well as nachos—together they make the perfect ending to a long day of sightseeing.

Smiðjan Brugghús

$$

After a long day of exploring the south coast, a burger and beer from Vík's Smiðjan Brugghús is just what the doctor ordered. This brewery serves up its own luxurious craft beer brewed on the premises along with a selection of comfort food including wings, chicken and waffles, BBQ ribs, and, of course, loaded burgers. 

Við Faxa

$$

This charming low-key country restaurant and café is a nice pit stop on the Golden Circle, with a deck overlooking the beautiful Faxi waterfall. Stop by for coffee and homemade dessert or stay for a lovely piece of fish.

Biskupstunga, Haukadalur, South, 801, Iceland
354-774–7440
Known For
  • signature soup and bread perfect for a cold day
  • Golden Circle lunch spot
  • patio seating
Restaurants Details
Rate Includes: Closed winter