Reykjavik, Iceland: Hotspot for Bakeries, Food Halls and Ice Cream

When I was in Iceland three years ago, there were no Starbucks or food halls, and the dining options were pretty limited. That's changed fast. Reykjavik now has a serious lineup of bakeries, food halls, and ice cream spots — and on this trip, I made it my mission to try as much as possible so I could bring you a list.

I asked locals for their favorites, and one recommendation came up again and again: start at Valdis.

🍦 Ice Cream

Valdis is known for its ever-changing menu of unusual flavors, and the locals insisted I try the weirdest one on the board that day: Rye Bread. Not something I'd normally order, but I trusted the recommendation — and it was genuinely good. (I stuck to a small taste rather than a full cup, but no regrets.)

Other ice cream spots to try:

• Gaeto Gelato
• Skubb

Most of these are along Laugavegur, the main pedestrian shopping street, so it's easy to hop between them.

🍜 Food Halls

Reykjavik now has four food halls, each packed with stalls serving food from around the world. We went for Vietnamese and pizza, and most halls have outdoor seating too. Food halls are one of the few places in Iceland where you'll find real variety at prices that won't make you wince.

• Pósthús is often called the best of the bunch
• Hlemmur Mathöll was our pick — just a few blocks from our hotel
• Grandi Mathöll and Borg 29 Mathöll are also worth a visit

A few people on our trip did a food tour and loved it — check it out here.

Reykjavik has quite the dining scene as well. 

Try Hofnin at the waterfront for traditional Icelandic food, but make a reservation.

If you venture south to the Ring Road, be sure to stop at the famous tomato restaurant Fridheimar and Black Crust Pizza in Vik. 

🥐 Bakeries

Reykjavik has a bakery on nearly every corner, and it's hard to walk past one without stopping. I tried Hugge, which has several locations — the apple turnover was excellent, the coffee was even better, and the bread was some of the best I've had. Good news: most hotels serve it at breakfast, so you'll get your fill either way.

Other bakeries worth seeking out:

• Brauð & Co
• Sandholt
• Brikk

🎟️ Things to Do

Reykjavik's activity list has grown just as much as its food scene:

• Perlan Museum — glaciers, volcanoes, and a real ice cave
• Whale Museum — an up-close look at the largest mammals in the ocean
• Viking Museum — a solid history lesson, though a bit intense for younger kids
• Fly Over Iceland — genuinely fun
• Puffin Tour — a great option if you're not driving south to see them yourself
• Lava Show — I didn't make it this time, but I've heard great things

🛏️ Where to Stay

Right in the harbor area:

• The Reykjavik Edition
• Alda Hotel Reykjavik

A bit further out (and easier on the budget), near bus stop 13:

• Hotel Foss Lind
• Hotel Foss Raudara

Both areas are still walking distance to the food halls and Laugavegur. Bonus: the Flybus leaves from bus stop 13 every hour for the airport, so it's an easy trip out. Just book your tickets in advance — it runs about $30 per person, each way.

🚗 Getting Around

Planning to explore beyond Reykjavik? You'll want a car. I recommend Blue Car Rental — it's a local company with a downtown office, so you can drop off your car there instead of making an extra trip to the airport.

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