Restaurant owners highlight challenges in Iceland’s dining industry amidst rising costs

Restaurant owners Hrefna Sætran and Gunnar Karl Gíslason have opened up about the challenging landscape in the dining industry today. Hrefna, a chef and owner of Fiskmarkaðurinn, likened the current situation to being trapped in a tough video game. “Sometimes it’s easier, and we’ll just have to wait for things to get better,” she stated when discussing the current restaurant market.

During a recent radio segment, they highlighted that the number of bankruptcies in the industry has increased over the last two years, and Gíslason, who owns the Michelin-starred Dill on Laugavegur, noted that the operational environment for restaurants has deteriorated. He mentioned, “All costs have skyrocketed.”

Both chefs expressed their disbelief at the pricing disparities, particularly between higher-end dining and fast food. Gíslason pointed out that the price difference between a meal at a fine dining establishment and a quick meal is minimal because restaurants trying to offer quality ingredients and service are worried that if they increase prices too much, they will lose customers.

Jón Mýrdal from the Kastrup restaurant echoed these sentiments, stating that the margins on fast food are much higher than what he can afford. He emphasized the difference in costs associated with maintaining a fine dining venue, including professional staff and higher-quality furnishings, compared to casual eateries that charge significantly more for poorer services.

Sætran and Gíslason’s insights reflect a broader concern within the hospitality industry as they grapple with rising costs and changing consumer habits.