Hygge, RAF & YALLERY, Bakken, Payda

Hygge, RAF & YALLERY, Bakken, Payda
September 15, 2025

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Hygge, RAF & YALLERY, Bakken, Payda

While Brút and café Kaffi Ó-le will be deeply missed, a bunch of new places have popped up in town in recent months. If you missed our recent print issues, here are some new spots you might not know about.

Hygge 

Barónsstígur 6, 101 Reykjavík 

Opening hours: Every day, 8:00 to 17:00

After a 245-day wait for its business license (where, in those 245 days, they had to buy a bakery in Kópavogur to avoid bankruptcy, failed a sound test by six decibels and had to completely rebuild their walls, and arguably faced way too much bureaucratic nonsense), Hygge has finally opened its second location on Barónsstígur. Just a moment away from Laugavegur, in the old spot of clothing shop/restaurant Nebraska, this coffeehouse and microbakery serves up both classic and experimental treats. Rumour has it this place is busy, so either be patient or try to go when they open at 8:00! ISH 

RAF Gallery & YALLERY 

Laugavegur 10B, 101 Reykjavík 

Opening hours: Weekdays, 11:00 to 17:00; Weekends, 12:00 to 18:00; Closed Mondays

On the corner of Laugavegur and Smiðjustígur, a big window invites onlookers to peer inside. Pieces of amber glint in the sun (well, when there is sun), and paintings adorn the walls. This is the new RAF Gallery space, a project from an Icelandic/Polish family. In one corner, a painting of a dinosaur with bracelets stands out. This is a part of YALLERY, their ongoing children’s art gallery within the store. Right now, two 11 year olds and one 8 year old are exhibiting. Don’t miss the newest and youngest artists on the scene. ISH 

Bakken 

Frakka­stígur 7, 101 Reykjavík 

Opening hours: Every day, 16:00-23:00

In Reykjavík, we’re used to spots sitting unused for months on end (whatever will happen to La Havana Club? 2Guys in Vesturbær?). But sometimes, a new establishment finally rises from a forgotten spot, like a phoenix from a very dusty pile of ashes. This month, we celebrate the opening of Bakken, which opened where Reykjavík Bar used to sit. Bakken’s hallmark is that they’ve inaugurated the return of beloved Mikkeller beer on tap in Reykjavík, but they’ve also got a wide array of grilled sandwiches and mocktails. What more could you need? ISH 

Payda 

Laugavegur 2, 101 Reykjavík 

Opening hours: Sunday to Thursday, 11:45 to 21:00; Friday and Saturday, 11:45 to 21:30 

This June, Grapevine’s food writer Shruthi Basappa wrote a compendium of Polish restaurants around the capital region. Now, she will have to add another to the list: Payda. Opening in the building at the intersection of Laugavegur and Skólavörðustígur, the restaurant offers Polish pancakes, schnitzels, desserts, and hearty soup and dish of the day meals at reasonable prices. Their name comes from the older Polish “padja,” which refers to a thickly cut slice of bread, and if you get their soup of the day, of course it comes with a side of their namesake. ISH 

Reykjavík changes pretty fast. If you don’t stop to read our New In Town once in a while, you could miss it.

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