Currently you have a choice of eight places to fill up for your journey. Three are real restaurants while the rest are more casual diner/bistro type spots.*
The three real restaurants are Nielsen, Glóð and Eldhúsið at the Lake hotel. All three offer good ambience and most often above average food. All are pretty centrally located which is really saying nothing as this town is small. Meaning a few minutes walk would get you there.
Eldhúsið has decent views across Lagarfljot river, which incidentally is not a lake as the stupid hotel name suggests. Nielsen is run in what is perhaps the most unique and beautiful building in Egilsstadir town and the building has quite a history too. Make sure to book there in advance as the place is very small
As you likely know by now, prices for most everything in Iceland border on insanity and that is most certainly the case regarding restaurants. Expect to fork out between 35$ and 50$ / 34€ to 48€ for a main dinner course for one person in all these restaurants. Double that amount if you go for a starter and easily triple the cost if you dare to buy a glass of wine alongside.
Shocked much yet?
However, amazingly as that may sound, the prices for a basic pizza or hamburger at all the other places we mentioned will also set you back 18$ / 16€ minimum. The only place selling prepared homey food at prices most locals deem fair is a tiny takeaway shop called Kjöt & Fiskur (Meat & Fish). Not surprisingly this place has the highest rating of all the places in the town of Egilsstadir on Google. We certainly recommend it but be aware they only sell prepared food during lunchtime.
* Take note many of these places are either closed during winter or open haphazardly.