Hugely popular with Reykjavikers seeking an affordable spot for lunch who come for its fresh baked bread, home made soups, and its fantastic fish of the day (fish cakes on the day I went), Ostabúðin doesn't seem to be on the radar of the tourist guidebooks.
Ostabúðin’s little hidden secret is its cosy restaurant on the bottom floor, open during lunch hours, (from 11:30 to 14:30). The small space only has a couple of seats and usually fills up quickly every day, but as the service is fast you don't have to wait long.
www.ostabudin.is/
Skólavörðustígur 8, 101 Reykjavík,
+354 562 2772
Google map: bit.ly/Kf0VUX