Cafe Loki in Reykjavik: Our First Icelandic Meal

Cafe Loki was one of our first food stops in Iceland, and it was a much better story than a generic list of Reykjavik restaurants. We came for a recognizable taste of Iceland in a place that was easy to find, directly across from Hallgrimskirkja.

The restaurant is at Lokastigur 28, in the heart of Reykjavik. Cafe Loki describes itself as a family-run restaurant focused on traditional Icelandic home-style food. Its location makes it an easy pairing with the church, the Einar Jonsson Sculpture Museum, or a walk through the city after arriving.

Cafe Loki in Reykjavik

Why Cafe Loki was a useful first stop

After a counter-clockwise Ring Road loop, we wanted one meal that felt specifically Icelandic rather than another convenient international meal. Cafe Loki's menu is built around recognizable local ingredients and traditional dishes: rye bread, fish, smoked lamb, lamb soup, herring, dried fish, and rye-bread desserts.

That made the stop useful for visitors who want an introduction to Icelandic food without committing to an expensive tasting menu. You can order a full plate, a simple sandwich or flatbread, soup, dessert, or just a small traditional item.

What we ordered: Icelandic lamb

Iceland is famous for lamb, so I ordered the lamb shank. It was the choice that made the most sense for me: a warm, substantial meal at the beginning of the trip, and a chance to try one of the country's signature ingredients in a familiar format.

A closer view of our lamb dish

Cafe Loki menu showing the lamb shank with potatoes and root vegetables, listed at 5,750 kr.

Cafe Loki's current menu describes its Icelandic lamb as being served with garlic-roasted potatoes, root vegetables, and a demi-glace-style sauce. Menus and prices can change, so check the restaurant's current menu before planning around a particular dish.

The famous fermented shark: we looked, but did not order it

Cafe Loki is also known for serving fermented shark, called hákarl, sometimes paired with brennivín. We treated it as a tasting rather than a full meal; it is the sort of dish we were glad to try once, even though the lamb and rye-bread dishes were easier favorites.

If you want a guided introduction to Icelandic food after arriving, compare the current Reykjavík food tour on Klook. This is a different experience from our independent Café Loki meal, but it can be useful for travelers who want several local tastings without choosing restaurants on their own.

Fermented shark at Cafe Loki, rotated for the article

I did not try it. I did not want to spend money on food I already suspected I would not enjoy, and I was not interested in ordering it just for clicks. Plenty of people on the internet have already documented that experience. For us, the better travel decision was to order something we genuinely wanted to eat and enjoy the atmosphere.

That is also useful advice for other travelers: Icelandic food culture is worth exploring, but you do not need to force every novelty onto your plate to have an authentic trip. Ask what a tasting portion includes, decide whether it fits your budget and appetite, and choose the dishes that interest you.

What else is special here

The traditional menu is interesting because it groups several Icelandic flavors in one place:

• plokkfiskur, a mashed fish dish served with rye bread;
• smoked lamb and homemade flatbread;
• dried fish with butter;
• Icelandic lamb soup;
• herring, trout, and other fish plates;
• rye-bread ice cream with cream and rhubarb syrup.

The rye-bread ice cream is especially memorable as a concept: it turns a staple Icelandic bread flavor into dessert. It is a good option if you want to sample something local without choosing one of the more challenging traditional foods.

Practical timing for a road trip

Cafe Loki opens early and sits in a walkable central location, so it can work as a breakfast, lunch, afternoon, or dinner stop. For a camper-van itinerary, I would use it in one of two ways:

1. On the first Reykjavik day, after arriving and before beginning the Ring Road.
2. On an early city day, when you want a proper Icelandic meal without adding another long drive.

The church across the street is the visual landmark. If you are navigating with luggage or walking from a hotel, search for Lokastigur 28 rather than relying only on the restaurant name.

Our honest takeaway

Cafe Loki was special because it gave us a clear introduction to Icelandic food: a central Reykjavik location, a view of one of the city's most recognizable buildings, and a menu that made Icelandic food approachable. We chose lamb rather than fermented shark, and that was the right choice for us.

For the wider route, compare this deliberate Reykjavik meal with the practical food stops in our Ring Road roadside food guide. For the full route, return to the counter-clockwise Iceland Ring Road itinerary, or use the camper-van food guide for grocery and cooking ideas.

Restaurant details and menu items are based on our visit and Cafe Loki's published menu. Confirm current opening hours, menu availability, and prices directly with the restaurant before visiting.