Why Iceland has had no McDonald's since 2009

If you go looking for a McDonald's in Iceland, you won't find one. The chain arrived in Reykjavík in 1993 and, in October 2009, announced it was closing its three restaurants in the country. It wasn't a boycott or an anti-fast-food law. It was simple arithmetic: selling burgers had become too expensive.

The crash that pushed McDonald's out of Iceland

In October 2008, Iceland's banking system collapsed and the króna, the local currency, plunged. For a chain that relied on imported ingredients, that was fatal.

Ögmundsson, an executive at Lyst, the company that held the franchise, explained the decision in comments published by Al Jazeera. Costs had doubled in a year because of the falling króna and high tariffs on imported goods. There was no way to raise prices further and still compete with restaurants using local produce.

The world's most expensive Big Mac

The numbers from the time show the scale of the problem. In 2009, a Big Mac cost 650 krónur in Reykjavík, about 5.29 dollars. To make a decent profit, the franchise would have needed a 20% increase, taking the burger to 780 krónur, or 6.36 dollars.

At that price, Iceland's Big Mac would have become the most expensive in the world. In The Economist's Big Mac index that year, the title was shared by Switzerland and Norway, at 5.75 dollars.

McDonald's headquarters in the US cited the "unique operational complexity" of doing business in Iceland and said it had no plans to seek a new partner there. Lyst announced it would reopen the restaurants under a new name, Metro, using local ingredients and keeping its 90 staff.

The meal that won't rot

McDonald's exit produced one of Iceland's oddest attractions. An Icelander named Hjörtur Smárason bought a burger and fries in the chain's final days in 2009 and kept them.

The meal spent time at the National Museum of Iceland and was later displayed at the Bus Hostel in Reykjavík, where it even got a webcam streaming its "life", NPR reported. It then moved to Snotra House, a hostel in Þykkvibær in the south of the country. In early 2025, the hostel's owner told the fact-checking site Snopes that the burger was still there and would stay there.

Iceland isn't the only country McDonald's has left

The chain has pulled out of several countries, for very different reasons. According to the list kept on Wikipedia, which records opening and closing dates, a few cases stand out:

• Bermuda (1985 to 1995). The British territory passed a law banning foreign franchise restaurants. Its only McDonald's survived because it was on a US naval air station, outside the law's reach. When the base closed in 1995, the restaurant closed too.
• Bolivia (1997 to 2002). The restaurants closed over poor sales and high prices. The chain later tried to return, without success.
• Jamaica (1995 to 2005). It closed amid problems with the country's government and falling sales.
• North Macedonia (1997 to 2013). It left after a contract dispute with the franchise owner.
• Russia (1990 to 2022). The first restaurant, on Pushkin Square in Moscow, was also the first in the Soviet Union. The chain left the country in May 2022.

In Iceland's case, the exact closing date was October 31, 2009, after 16 years in business: the first restaurant had opened on September 9, 1993.

The fast food that stayed: the hot dog

Without McDonald's, Reykjavík's most famous quick bite is something else, and much older than the American chain's time in the country. Bæjarins Beztu Pylsur, whose name means roughly "the town's best hot dogs," has been selling hot dogs since 1937. The original stand is on Tryggvagata, in the centre, and the brand now has 13 locations: 10 in the greater Reykjavík area, 2 on the Reykjanes peninsula in the southwest and 1 in Hella, in the south.

The stand became famous worldwide because of one customer. According to the company's own website, in 2004 former US President Bill Clinton walked past the stand during a visit to Iceland. Mæja, from the stand, called out his name and offered him a hot dog. Clinton was on a diet and asked for mustard only. Ever since, a hot dog with just mustard has had a nickname there: a "Clinton."

It's the irony of the story: the country that lost McDonald's over the cost of imported ingredients has, as its best-known fast food, a local stand older than the American chain itself.

Practical tips

• Don't count on McDonald's in Iceland. For a quick bite, look for local snack bars.
• Try a hot dog at Bæjarins Beztu Pylsur. The original stand is on Tryggvagata, in central Reykjavík.
• Want to see the 2009 meal? It was at Snotra House in Þykkvibær, in southern Iceland, in early 2025. Check with the hostel before you go.
• Looking for Iceland in the Big Mac index? The Economist uses the burger's price to compare currencies' purchasing power, but Iceland has had no Big Mac to price since the chain left.

FAQ

Is there a McDonald's in Iceland?

No. The chain closed its three restaurants in the country in 2009 and said at the time that it had no plans to seek a new local partner.

Why did McDonald's leave Iceland?

After the 2008 financial crisis, the króna lost value and the cost of imported ingredients doubled. Raising prices would have made Iceland's Big Mac the most expensive in the world.

What is Iceland's most famous fast food?

The hot dog from Bæjarins Beztu Pylsur, sold in Reykjavík since 1937. The stand became famous after Bill Clinton's visit in 2004.

Where is Iceland's last McDonald's burger?

At Snotra House, a hostel in Þykkvibær in the south of the country. Before that, it was at the National Museum and at the Bus Hostel in Reykjavík.

Iceland has other quirks that surprise visitors, such as the fact that it never changes its clocks.

Sources

• Iceland says bye to Big Mac, Al Jazeera, October 27, 2009: the 1993 arrival, the three restaurants, rising costs, the Big Mac price, The Economist's index, the headquarters statement and the plan to reopen as Metro.
• Live, From Iceland: It's A Hamburger, NPR, January 28, 2015: the meal bought in 2009, its time at the National Museum and the webcam at the Bus Hostel.
• List of countries with McDonald's restaurants, Wikipedia: the opening and closing dates in Iceland and the countries the chain has left.
• Bæjarins Beztu Pylsur, official website: the founding year, the locations and the Bill Clinton story.
• Icelandic Display Shows Last McDonald's Cheeseburger Sold There?, Snopes, February 2, 2025: the buyer, the move to Snotra House and confirmation that the meal was still there.