Reasonably priced accomodation options were slim here, but I went with the Hofn Guesthouse. A central location, clean & comfortable, but tiny. Tiny room, tiny shared bathrooms, tiny kitchen; you get the idea.
Checking tripadvisor, I had to try the Langoustines at Pakkhus Restaurant, and wow !
Langoustine is a small lobster of sorts, and the tails have a flavour that hints of a sweat crab. I went with the cream sauce option, and out came about 20 half tails, a very full plate, each and all delicious. A bit pricey, and without a booking, I had to wait an hour, but this was well worth the wait.