We grabbed a hot dog at a gas station on on route to Hofn
When we got to Hofn, we asked our host at Apotek Guesthouse about some dinner options. They suggested Hafnarbuðin. It's a quick service restaurant serving sandwiches to locals for reasonable prices (vs. the touristy lobster places selling entrees for double the price).
A sandwich with fries inside!
Great sandwich! There was a lot of fried lobster and it was seasoned nicely with a good combination of veggies and sauce. It was also a reasonably priced sandwich considering the other options in town were way more.