Sandholt has been on Laugavegur in some form since 1920 and is now run by the fourth generation of the same family. The sourdough loaves and croissants are the best in Reykjavik; the all-day brunch menu — eggs Benedict, avocado toast, smoked salmon plates — runs from breakfast through to mid-afternoon.
Sit at the long wooden bar in the window for the best people-watching on the street. Coffee is by Reykjavik Roasters; pastries change with the season.