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Metro is an Icelandic fast-food restaurant chain created as the successor to McDonald's Iceland in 2009.

Last updated November 3, 2026

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Overview

Metro is an Icelandic fast-food restaurant chain that emerged in the aftermath of McDonald's withdrawal from Iceland. The brand was introduced by Lyst Hr., the Icelandic company that had operated McDonald's franchises in the country, after the franchise business became economically difficult during the 2008–2011 Icelandic financial crisis. Currency weakness and high tariffs on imported food sharply increased the cost of imported ingredients. Rather than pass those costs on to customers through higher menu prices, Lyst Hr. closed the McDonald's operation and reopened the former restaurants under its own brand, Metro, on 1 November 2009. The transition was closely connected to the economic structure of Iceland's restaurant market. McDonald's Iceland had opened in Reykjavík in 1993 and initially relied substantially on Icelandic meat. Later supply shortages led the operation to use imported meat and other ingredients, including products sourced from Germany. After the Icelandic króna weakened, imported ingredients became much more expensive. The resulting cost pressure made it difficult for the franchise holder to maintain competitive prices against local restaurants that used more locally sourced food. Metro was therefore positioned around lower prices, local procurement where practical, and a menu that combined familiar international-style fast food with products and terminology adapted to Icelandic customers. The new chain retained some menu concepts associated with McDonald's, including a flagship burger called the Heimsborgari, which occupies a role comparable to the Big Mac. These products were presented under Icelandic names, while the broader menu included hamburgers, fries, grilled chicken, chicken nuggets, salads, wraps, mozzarella sticks, soft drinks, milkshakes, and fruit. The chain also introduced healthier choices. A menu revision announced from 2011 expanded salads, added options such as Caesar salad and haystack salad, offered naan as a wrap choice, and displayed calorie information for menu items. Metro's supply model was not completely local: vegetables and meats were sourced domestically when possible, but some bread, cheese, naan, and other ingredients continued to come from abroad. The brand's operating format resembled the restaurants it replaced, with drive-through service, indoor seating, and children's playgrounds. Its opening attracted substantial public interest, including queues at restaurants and drive-through lanes. Ownership changed several times during Metro's early years. In June 2010, Lyst Hr. sold the chain to Lífs og heilsu ehf. The transaction separated Metro from liabilities associated with the former parent, although Lífs og heilsu ehf. subsequently encountered financial difficulties and entered bankruptcy. Metro was sold again in January 2013 to M-Veitingar ehf. In 2015, meat shortages caused by strikes at the Icelandic Veterinary Association led Metro temporarily to substitute pork for beef in its hamburgers. By 2019, the chain had reduced its Icelandic footprint to two restaurants after one Reykjavík location closed. The available reference material does not establish the current number of locations, ownership details, or the brand's present operating status with certainty.

History

Metro's history is inseparable from the rise and withdrawal of McDonald's in Iceland. McDonald's opened its first Icelandic restaurant in Reykjavík in 1993, during a period of increasing prosperity and consumer demand. The local franchise initially used Icelandic meat, but supply shortages later encouraged reliance on imported meat, particularly from Germany. This exposed the franchise to international ingredient prices and import costs. The 2008 financial crisis placed severe pressure on the Icelandic operation. The króna lost value, while import tariffs made food ingredients substantially more expensive. The cost of products such as onions rose sharply, and the price of a Big Mac increased from 650 króna to 780 króna in 2009. The franchise operator, Lyst Hr., concluded that continuing to raise prices would undermine its ability to compete with Icelandic restaurants using domestic ingredients. It therefore decided to terminate McDonald's operations rather than continue under the existing cost structure. The final McDonald's restaurant in Iceland closed on 30 October 2009. The announcement generated a rush of last-minute demand: more than 10,000 burgers were reportedly sold in one day, and the Big Mac sold out before the final closure. On 1 November 2009, the former locations reopened as Metro. Lyst Hr. retained 90 former employees and created approximately 15 additional jobs. Metro used locally sourced ingredients when possible and kept certain familiar menu formats, but translated the names of inherited items into Icelandic and added domestic products. The early Metro concept was built around affordability and adaptation rather than a complete break with international fast-food conventions. Its menu included hamburgers, fries, chicken products, salads, wraps, drinks, desserts, and snacks. The Heimsborgari became the chain's best-known burger and was positioned as an equivalent to the Big Mac. From 2011, Metro broadened its offer for health-conscious customers by adding salads, including Caesar salad and haystack salad, introducing naan as a wrap option, and displaying calorie information. The chain's corporate ownership was unstable. Lyst Hr. sold Metro to Lífs og heilsu ehf. in June 2010. Lyst Hr. later declared bankruptcy, while the buyer also developed significant debts and eventually entered bankruptcy. In January 2013, Metro was sold to M-Veitingar ehf. These changes did not eliminate the brand's operational exposure to Iceland's food-supply conditions. In May 2015, strikes involving the Icelandic Veterinary Association contributed to shortages of meat supplied to restaurants. Metro responded temporarily by replacing beef with pork in its hamburgers. Metro operated in a format similar to its predecessor, including drive-through facilities, indoor dining, and children's playgrounds. However, the chain remained geographically limited to Iceland. By 2019, one Reykjavík branch had closed, leaving two reported restaurants, located in Skeifan and Smartorg. The available sources do not provide reliable information about subsequent expansion, closure, ownership, executive leadership, or current locations, so the brand's present condition requires verification.

  • 2019

    Restaurant count falls to two reported locations

    [1]

    A Reykjavík restaurant closes, leaving two Metro branches reported in Iceland.

  • 2015

    Temporary pork substitution

    [1]

    Meat shortages linked to veterinary-sector strikes lead Metro to replace beef with pork in its hamburgers for a limited period.

  • 2013

    Metro changes ownership again

    [1]

    Lífs og heilsu ehf. sells Metro to M-Veitingar ehf. in January.

  • 2011

    Health-oriented menu revision

    [1]

    Metro expands salads and wrap choices and begins presenting calorie information for its menu items.

  • 2010

    First ownership transfer

    [1]

    Lyst Hr. sells Metro to Lífs og heilsu ehf. in June.

  • 2009

    McDonald's Iceland closes

    [1]

    All McDonald's restaurants in Iceland close on 30 October after the franchise holder determines that imported-input costs make the business difficult to sustain competitively.

  • 2009

    Metro launches

    [1]

    Lyst Hr. reopens the former McDonald's locations under the Metro name on 1 November, using more locally sourced ingredients and retaining many former employees.

  • 2008

    Financial crisis increases imported-food costs

    [1]

    The Icelandic financial crisis weakens the króna and raises the cost of imported ingredients, putting pressure on the McDonald's franchise's pricing and supply model.

  • 1993

    McDonald's enters Iceland

    [1]

    McDonald's opens its first Icelandic restaurant in Reykjavík, establishing the franchise operation that would later become Metro.

Products and positioning

An Icelandic value-oriented fast-food chain emphasizing competitively priced meals, locally sourced meat and vegetables where available, Icelandic menu adaptation, and a broader selection of lighter food choices.

  • Hamburger · 2009

    Heimsborgari

    Metro's signature hamburger and its closest counterpart to the Big Mac concept inherited from the former McDonald's operation. It represents the brand's effort to preserve a familiar fast-food format while presenting the product under an Icelandic name.

  • Main meal · 2009

    Hamburgers

    Hamburgers form the core of Metro's menu. The brand emphasized the use of locally supplied meat where available, although temporary supply disruptions in 2015 required pork to replace beef in some burgers.

  • Main meal · 2009

    Chicken products

    The chain sells grilled chicken and chicken nuggets as alternatives to its hamburger range, alongside standard fast-food sides and beverages.

  • Lighter meals · 2011

    Salads and wraps

    Metro expanded its lighter-meal selection from 2011 with salads such as Caesar salad and haystack salad, as well as wraps that could use naan. Calorie information was also added to support health-conscious customers.

  • Sides and beverages · 2009

    Sides, desserts, and beverages

    Supporting items include French fries, mozzarella sticks, soft drinks, milkshakes, and fruit. These products complement Metro's burger, chicken, salad, and wrap meals.

Controversies

  • 2026

    Judge allows family’s lawsuit against Metro to move forward

    A judge decided that the lawsuit by Rashawn Williams’s family against the Washington Metropolitan Area Transit Authority can move forward. The suit stems from an incident in which Williams was trapped in a refuge area at Glenmont station for six days.

  • 2021

    Metro apologizes for publishing letter about antisemitism

    Metro apologized for publishing a reader letter that asserted antisemitism is not racism because Jews are "privileged." The article gives conflicting timing for the apology: it says Wednesday and also says the paper apologized the day after a letter published Monday.

  • 2020

    Metro recalls products over possible Salmonella contamination

    Metro Ontario Inc. recalled certain Metro-branded products sold in Ontario because of possible Salmonella contamination. The source reports no associated illnesses. The recall was reported on November 29, 2020.

Read more

Marketing campaigns

  • 2011Health-conscious menu expansion

    Iceland

    Metro broadened salads and wraps, introduced naan as a wrap option, and displayed calorie information to appeal to customers seeking lighter choices without abandoning its core fast-food audience.

    Outcome. The chain continued offering both conventional fast food and healthier alternatives.

  • 2009Metro launch and local-sourcing repositioning

    Iceland

    The reopening of former McDonald's locations under the Metro name functioned as a market repositioning centered on lower prices, locally supplied ingredients, and Icelandic-language menu adaptation.

    Outcome. Metro replaced the McDonald's Iceland operation and initially attracted strong customer traffic.

Brand decisions

  • 2015

    Temporarily replace beef with porkOther

    Background

    Strikes at the Icelandic Veterinary Association contributed to meat shortages affecting Metro and other restaurants.

    Action taken

    Metro temporarily substituted pork for beef in its hamburgers.

    Aftermath

    The substitution addressed a short-term supply disruption; the available source does not state how long it lasted.

  • 2011

    Expand the menu for health-conscious customersStrategy

    Background

    Metro sought to serve customers interested in lighter meals while maintaining its regular fast-food offer.

    Action taken

    The chain added salad options, expanded wrap choices with naan, and made calorie information available for menu items.

    Aftermath

    The menu covered a wider range of eating preferences, although the available sources do not quantify the commercial effect.

  • 2009

    Replace McDonald's Iceland with MetroStrategy

    Background

    The Icelandic financial crisis, currency depreciation, and high import tariffs increased the cost of imported ingredients and made price increases commercially unattractive.

    Action taken

    Lyst Hr. closed all McDonald's restaurants in Iceland and reopened the former branches under its own Metro brand using more locally sourced ingredients.

    Aftermath

    Metro became the successor chain, retained most former employees, and continued using several familiar menu formats with Icelandic naming.

Recent events

  • Unconfirmed

    Reported

    Crystal City Metro east entrance receives Envision Silver Award[5]

    The new east entrance to the Crystal City Metro Rail Station received an Envision Silver Award for sustainable design, becoming the first project in the Metro system to earn an Envision award.

  • Unconfirmed

    Reported

    Judge allows family’s lawsuit against Metro to move forward[2]

    A judge decided that the lawsuit by Rashawn Williams’s family against the Washington Metropolitan Area Transit Authority can move forward. The suit stems from an incident in which Williams was trapped in a refuge area at Glenmont station for six days.

  • Reported

    Von Wellx entered the Indian market[6]

    Von Wellx Germany footwear was reported to have come to India and to be available at Metro and Mochi shoe stores across the country.

  • Unconfirmed

    Metro apologizes for publishing letter about antisemitism[4]

    Metro apologized for publishing a reader letter that asserted antisemitism is not racism because Jews are “privileged.” The article gives conflicting timing for the apology: it says Wednesday and also says the paper apologized the day after a letter published Monday.

    Weekdays and relative dates follow the original report; their exact calendar dates have not been verified.

  • Reported

    CRRC unveils subway cars for Los Angeles testing[7]

    CRRC unveiled new subway cars intended for delivery to Los Angeles for testing. The pilot cars had arrived at CRRC's assembly factory in Springfield, Massachusetts for initial testing and were to be sent to Los Angeles for further testing before use.

  • Reported

    SmarTrip launches on Google Pay for Android users[8]

    Metro launched SmarTrip on Google Pay for Android users, who can use the app to add funds, purchase passes, view SmartBenefits and set up Auto Reload.

  • Reported

    Five companies announce plans for Montreal-area vaccination clinics[9]

    Bell, Couche-Tard, Groupe CH, Metro and National Bank announced plans to set up two COVID-19 vaccination clinics in Montreal and Brossard starting in early May, and committed to covering the $4 million setup and operating cost.

  • Reported

    Metro reports first-quarter results and raises dividend[10]

    Metro Inc. reported first-quarter profit and sales above the year-earlier period and raised its quarterly dividend to 25 cents per share from 22.5 cents.

  • Reported

    METRO launches DISH digital platform in Romania[11]

    METRO announced the launch of DISH, a digital-solutions platform for hospitality businesses, in Romania. The platform was to become available there starting January 15, with an initial launch in Bucharest and plans for gradual expansion across the country.

  • Reported

    Wipro acquires Metro IT units[12]

    Metro sold its IT units to Wipro for £36 million, according to a disclosure cited in the article. The units and 1,300 employees in Germany, Romania and India are to transfer to Wipro.

Read more(15)

Sources18 sources

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