You want lunch with a view? Head out to the Pearl, Perlan in Icelandic, just outside of downtown Reykjavik. Here you will have a nice view of the city, the bay and beyond, while you enjoy a tasteful lunch. There’s lots to choose from, and the prices are not too intimidating. And of course, it’s also possible to come just for the nice view. PS! On their website I see there’s also a restaurant serving dinner, and, based on the photos, the dishes look enticing.
It’s very easy to get to the Pearl. Get on a local bus (short ride), and climb the hill.