Why Iceland Doesn't Have McDonald's Restaurants
Discover why there’s no McDonald’s in Iceland, its brief history, and where to find the best local fast-food alternatives instead.
Iceland is one of the few countries in the world where you won’t find a single McDonald’s. This might come as a surprise to travelers used to spotting the golden arches almost everywhere. The reason goes beyond simple business decisions and is tied more to economics, culture, and Iceland’s unique approach to food.
Does McDonald’s Exist in Iceland?
No, there are no McDonald’s restaurants anywhere in Iceland. Whether you’re in Reykjavík or exploring the countryside, you won’t see a McDonald’s sign. The global fast-food giant once tried its luck here, but it’s been gone for more than a decade and there are no current plans for a return.
A Quick History of McDonald’s in Iceland
McDonald’s first opened in Iceland in 1993 in Reykjavík, operated by a local franchisee. The arrival of the famous fast-food chain created huge excitement, and locals queued around the block for their first Big Macs.
For a while, McDonald’s thrived, with a few more locations opening across the capital area. However, the success didn’t last long. When the 2008 financial crisis hit Iceland, the company’s business model became unsustainable forcing McDonald’s to officially close its doors in Iceland in 2009.
Why McDonald’s Failed in Iceland
There wasn’t one single reason why the famous fast-food chain disappeared from Iceland — it was a combination of economic, logistical, and cultural factors that made operations difficult and expensive.
The 2008 Financial Crisis
When the global financial crisis struck in 2008, Iceland’s economy suffered dramatically. The Icelandic króna lost much of its value, making imported goods extremely expensive. Since McDonald’s required strict compliance with its global supply chain standards, importing all the approved ingredients became financially unfeasible.
High Operating Expenses
The cost of running a McDonald’s in Iceland skyrocketed. Importing everything from beef and cheese to packaging materials became prohibitively expensive due to currency fluctuations and shipping costs. Local sourcing wasn’t allowed under McDonald’s strict supply chain policies, forcing franchisees to buy through approved international suppliers at a loss.
The Country’s Cultural Factors
Iceland’s food culture also played a role. Locals tend to prefer fresh, local ingredients and support homegrown businesses. Even other international chains have struggled: Burger King operated in Iceland from 2004 to 2008, but it also shut down quickly. Icelanders have shown a clear preference for unique, locally inspired fast-food options instead of standardized global menus.
Will McDonald’s Ever Come Back to Iceland?
It’s unlikely that McDonald’s will return to Iceland anytime soon. The small market size, high costs, and local food preferences make it a challenging environment for large global chains. Still, Icelanders don’t seem to miss it. There are plenty of delicious alternatives and few feel the need for a Big Mac.
Iceland’s Famous Last McDonald’s Burger & Fries
When the final McDonald’s in Iceland closed in 2009, one customer decided to buy the last burger and fries as a keepsake. That person was Hjörtur Smárason, who wanted to see how long the meal would last.
More than a decade later, the burger still looks nearly identical to the day it was bought and is preserved under glass for curious visitors to see. It was most famously displayed at the National Museum of Iceland and was last known to be at Snotra House, a hostel in southern Iceland, where it drew thousands of curious tourists. It’s a quirky reminder of Iceland’s brief McDonald’s era.
About Iceland Fast-Food Culture
Although McDonald’s is gone, Icelanders still enjoy fast food, just with their own twist. Street food and hot dogs are hugely popular, especially the world-famous Bæjarins Beztu Pylsur hot-dog stand in Reykjavík. Icelandic fast food often focuses on quality, locally sourced ingredients rather than mass-produced options.
Local Icelandic Alternatives
If you’re craving a burger in Iceland, there are plenty of excellent local options. Chains like Tommi’s Burger Joint (Hamborgarabúllan) and Metro (the Icelandic-owned successor to McDonald’s) offer great burgers with local character. You’ll also find many small, independent diners serving delicious fast food with an Icelandic slant.
Best Fast-Food Restaurants in Iceland
Fast-food lovers won’t go hungry here. Besides Metro and Tommi’s, there are popular spots like 2 Guys, Block Burgers, Reykjavík Chips and Yuzu Burger. You’ll also find plenty of vegan-friendly options catering to plant-based travelers.
Ready to Explore Iceland’s Fast-Food Scene?
While McDonald’s may never make a comeback, Iceland’s fast-food scene is thriving and deliciously unique. From hearty burgers and crispy fries to local favorites like hot dogs (pylsur), there’s something for every craving, and you'll find plenty of great options for cheap eats in Reykjavík and all around the country.
If you're interested in the country's quirks and hidden stories, check out our blog and discover more fun and weird facts about Iceland.
