Is There Starbucks in Iceland?
Yes, Starbucks has finally arrived in Iceland. After years of waiting, the coffee chain opened its first store in central Reykjavík on July 4, 2025. But Iceland's rich coffee culture offers much more than this familiar chain; the country has a deep-rooted café tradition that coffee lovers will want to explore.
Starbucks in Iceland: Current Status
Starbucks opened its doors at Laugavegur 66, right in the heart of downtown Reykjavík. The store was delayed several times due to permit issues with city authorities, pushing back its launch from the planned May opening.
The new café has 16 staff members and is run by Beryaja Coffee Iceland ehf., a part of Malaysia's Berjaya Food Berhad. This company already runs Starbucks in Finland and Denmark, making Iceland a natural next step.
Despite joining Starbucks' network of over 40,000 stores worldwide, the Icelandic cafés will keep some local touch, with food made locally alongside the usual Starbucks menu of coffees, cold drinks, and desserts.
A second location is expected to open in the coming weeks, although the exact location hasn't been shared yet.
Why did Starbucks take so long to open in Iceland?
Starbucks took so long to open 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 enjoy sitting down, taking their time, and catching up with friends. Local cafés already offer that experience, so Starbucks doesn’t really bring anything new.
Iceland is Small
Iceland has only about 400,000 people, which isn’t a large market. Starbucks usually seeks locations 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 doesn't feel that special.
Sustainability is Important
Sustainability matters a lot in Iceland. Many local cafés prioritize fair trade, recycling, and reducing waste. While Starbucks also tries to do this, local spots are often ahead and better fit the needs of people here.
Best Alternatives to Starbucks in Iceland
I'm sure many of you are happy about Starbucks opening up a store in Reykjavik, but even without Starbucks, you wouldn't have trouble finding good coffee. Iceland’s cafés are well worth visiting and are a key 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.
Big Chains You Won’t Find in Iceland
Until July 4th, Starbucks was part of an extensive list of famous brands missing from Iceland:
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.
Conclusion
While Starbucks has finally arrived in Iceland, the country's rich coffee culture offers so much more. For an authentic experience, try the local cafés. You'll find not just good coffee but also a glimpse into Icelandic daily life and traditions.