CultureFood & DrinkIs There Starbucks in Iceland?
Coffee beans and Iceland's flag in the middle
Go Car Rental Iceland travel writer Aron Freyr
By Aron FreyrJan 4, 2025 • 5 min read

Is There Starbucks in Iceland?

Starbucks is pretty much everywhere – from big cities to small towns. But if you're heading to Iceland and hoping to grab your usual latte, you might be surprised. There’s no Starbucks in Iceland. Even though Starbucks is in over 80 countries, Iceland isn’t one of them.

But don’t worry – you won’t have trouble finding good coffee. Iceland has a strong coffee scene, with many local spots that are just as good, if not better. Let’s talk about why Starbucks hasn’t opened in Iceland and where you can find great coffee instead.

Why Isn’t There Starbucks in Iceland?

Starbucks hasn’t opened in Iceland for a few simple reasons – the strong local coffee culture, the small market, and the fact that people here really like their local cafés.

Coffee is a Big Part of Life

In Iceland, coffee isn’t just something to get you through the day. People like to sit down, take their time, and catch up with friends. Local cafés already offer that experience, so Starbucks doesn’t really bring anything new.

Iceland is Small

Iceland only has about 400,000 people, which isn’t a big market. Starbucks usually looks for places with lots of daily customers. Here, local cafés are enough to keep up.

People Prefer Local Cafés

Icelanders like to support small businesses. Local coffee shops are popular because each one feels unique, and people enjoy that personal touch. A big chain wouldn’t feel that special.

Sustainability is Important

Sustainability matters a lot in Iceland. Many local cafés focus on fair trade, recycling, and cutting waste. While Starbucks tries to do this too, local spots are often ahead and fit better with what people care about here.

Two cups of coffee in Iceland

Best Alternatives to Starbucks in Iceland

Even without Starbucks, you won’t have trouble finding good coffee. Iceland’s cafés are worth visiting and are part of what makes the country special. Here are a few to check out:

1. Te & Kaffi

Te & Kaffi is Iceland’s biggest coffee chain, with over 40 locations in places like Reykjavik, Akureyri, and Keflavik. Even though it’s a chain, it feels cozy and friendly. They serve coffee, tea, and seasonal drinks and have pastries, sandwiches, and snacks, making it great for breakfast or grabbing something on the go. No matter where you are, Te & Kaffi is an easy place to have a coffee and relax.

2. Reykjavik Roasters

Reykjavik Roasters is one of the best coffee places in Reykjavik. They hand-pick their beans and roast them in-house, so the coffee is always fresh and full of flavor. Their cafes on Laugavegur and Skólavörðustígur have a calm, simple feel – good for meeting friends or getting some work done. They also try to help the environment by using eco-friendly materials and buying beans the right way. Locals and visitors both love it for the great coffee and relaxed atmosphere.

3. Kaffivagninn

Kaffivagninn is the oldest café in Reykjavik, sitting by the old harbor since 1933. It’s a mix of good coffee and history. They serve classic drinks, filling meals, and Icelandic pastries. You can sit outside and enjoy the view of the harbor and boats. If you like places with a story, Kaffivagninn is a nice spot to visit.

4. Stofan Café

Stofan Café is a small, cozy café in downtown Reykjavik. It feels warm and comfortable – a good place to have coffee, read, or relax after a day of sightseeing. They use beans from local roasters, so the coffee is fresh and tastes great. The café has soft lighting, comfy chairs, and homemade pastries and snacks. Since it’s in the middle of town, it’s easy to stop regardless of where you’re staying.

Te & Kaffi shop

Other Big Chains You Won’t Find in Iceland

Starbucks isn’t the only brand missing from Iceland. A few other well-known chains haven’t made their way here either.

1. Uniqlo

Uniqlo hasn’t opened in Iceland yet. Instead, you’ll find local boutiques and Icelandic designers that reflect the country’s unique style.

Iceland does have other famous retail brands, such as Zara and H&M.

2. Primark

Primark is another brand that hasn’t set up shop in Iceland. Local stores focus more on quality and sustainability than fast fashion.

3. McDonald's

McDonald's used to be in Iceland, but the last location closed in 2009 during the financial crisis. Importing ingredients became too expensive, and they never reopened. Local spots like Tommi’s Burger Joint took over, and most people don’t seem to miss it.

4. Burger King

The first Burger King in Iceland opened in Reykjavik in 2004, but it only lasted until 2008, when it had to close due to the financial crisis.

The same thing happened to other chains like KFC or Taco Bell, although some of them were able to recover years later and make a comeback to Iceland's food scene.

5. Uber

Uber doesn’t operate in Iceland. Taxis and rental cars are the only options for getting around. It’s not as convenient, but it works. In bigger cities, there’s also public transport.

Retail shop in Iceland

Conclusion

There’s no Starbucks in Iceland, but that’s not a problem. The local cafés offer great coffee and a more personal experience. The same goes for fast food and shopping – no McDonald’s or Burger King, but Tommi’s and local boutiques are worth checking out.

Next time you’re in Iceland, skip the search for familiar chains. Try the local spots – you’ll probably like them more anyway.

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