Iceland has a surprisingly active fast food scene, with a mix of international chains, beloved local spots, and quick-service restaurants you won’t find anywhere else. There’s no McDonald’s, but you’ll find Domino’s, Subway, KFC, Taco Bell, and several homegrown options that locals often prefer.
Why There’s No McDonald’s
McDonald’s opened its only Icelandic location in Reykjavik in 1993, but it didn’t survive the 2008 financial crisis. When the Icelandic króna plummeted in value, import tariffs on foreign goods spiked. Unlike local competitors who sourced ingredients domestically, McDonald’s relied heavily on imported produce. The cost of shipping in meat, onions, and other staples made it impossible to price a burger competitively. The restaurant closed in late 2009 and never returned.
International Chains in Iceland
Several American chains have made it work where McDonald’s couldn’t. Domino’s Pizza has the most locations of any international fast food brand in the country. Subway, KFC, Taco Bell, Pizza Hut, and Sbarro all operate in Iceland as well, mostly concentrated in the Reykjavik area. TGI Fridays also has a presence, though it leans more sit-down than fast food. These chains generally rely more on local sourcing than McDonald’s did, which helps keep prices manageable in a country where importing food is expensive.
The Icelandic Hot Dog
If Iceland has a national fast food, it’s the hot dog. Bæjarins Beztu Pylsur, a small stand in downtown Reykjavik that’s been operating since 1937, is the most famous spot. Icelandic hot dogs are made from a blend of lamb, beef, and pork, seasoned with paprika, pepper, garlic, onion, and coriander, then stuffed into a natural casing. The result tastes noticeably different from an American hot dog: richer, slightly gamey, with a satisfying snap.
To order one the local way, say “eina med ollu, takk,” which means “one with everything, please.” That gets you a hot dog topped with remoulade (a sweet mustard-mayo sauce), pylsusinnep (a brown, slightly sweet mustard unique to Iceland), ketchup, crispy fried onions, and raw onions. A loaded hot dog costs around 500 to 600 ISK, roughly $4 to $5.
Local Burger Joints
Icelanders love burgers, and the local options tend to outshine the chains. Hamborgarabúlla Tómasar, often called Tommi’s Burger Joint, is one of the most popular. It serves a stripped-down menu of classic burgers, cheeseburgers, and fries, and it’s earned a loyal following among both locals and tourists for using quality meat and keeping things simple.
Aktu Taktu is Iceland’s answer to a drive-thru burger chain. The menu reads like a local riff on American fast food: cheeseburgers, bacon burgers, a BBQ burger with caramelized onions, and their “American Dream,” a double cheeseburger with cheddar, pickles, onions, Dijon mustard, ketchup, and lettuce. Meals come with fries and a soda. It’s the closest thing to a McDonald’s drive-thru experience you’ll find in Iceland, and it’s entirely Icelandic-owned.
Fish and Chips
Given that Iceland sits in some of the richest fishing waters in the North Atlantic, quick-service fish and chips is everywhere in Reykjavik. Several spots specialize in it. 101 Reykjavik Street Food is one of the highest-rated, with over 2,000 reviews and a reputation for generous portions at reasonable prices by Icelandic standards. Reykjavik Chips and Fish and Chips Vagninn are other well-reviewed options that focus almost exclusively on fried fish with crispy chips. Many of these places also serve lobster soup, which has become almost as iconic for tourists as the hot dog.
Food Halls and Fast Casual
Hlemmur Mathöll, Reykjavik’s first food hall, is worth knowing about if you want variety in one stop. Modeled after European food markets, it houses a rotating lineup of vendors. You can get LA-style tacos at Fuego, Neapolitan pizza at Flatey Pizza, Vietnamese bánh mì sandwiches at Halló Xin Cháo, or Italian gelato at Gaeta Gelato. One vendor, Fjárhúsið (meaning “the sheephouse”), focuses entirely on Icelandic lamb and serves meat soup, lamb burgers, pitas, and wraps using local ingredients. It’s fast casual rather than fast food, but the speed and price point are similar.
Gas Station Food on the Road
If you’re driving the Ring Road or traveling outside Reykjavik, gas stations become your primary fast food option. N1, Iceland’s largest fuel station chain, has a surprisingly extensive hot food menu. Their locations serve cheeseburgers, bacon burgers, chicken burgers, a béarnaise burger, crispy chicken wraps, chicken wings, fish and chips, wiener schnitzel, and even Icelandic lamb soup. There’s a kids’ menu with hamburgers, chicken fingers, and fish nuggets. Olís, another major chain, offers similar fare. These aren’t gourmet meals, but they’re hot, filling, and often the only option for hours in remote stretches of the country. For many visitors, an N1 burger and lamb soup end up being a surprisingly memorable part of the trip.