Metro

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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]Metro (restaurant chain)en.wikipedia.org
A Reykjavík restaurant closes, leaving two Metro branches reported in Iceland.
2015
Temporary pork substitution
[1]Metro (restaurant chain)en.wikipedia.org
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]Metro (restaurant chain)en.wikipedia.org
Lífs og heilsu ehf. sells Metro to M-Veitingar ehf. in January.
2011
Health-oriented menu revision
[1]Metro (restaurant chain)en.wikipedia.org
Metro expands salads and wrap choices and begins presenting calorie information for its menu items.
2010
First ownership transfer
[1]Metro (restaurant chain)en.wikipedia.org
Lyst Hr. sells Metro to Lífs og heilsu ehf. in June.
2009
McDonald's Iceland closes
[1]Metro (restaurant chain)en.wikipedia.org
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]Metro (restaurant chain)en.wikipedia.org
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]Metro (restaurant chain)en.wikipedia.org
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]Metro (restaurant chain)en.wikipedia.org
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.
Source
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.
Source
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.
Source

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.
Source
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.
Source

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.
Source
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.
Source
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.
Source

Recent events

2024
Metro announces transition from Air Miles to Moi Rewards[5]Metro宣布从Air Miles过渡到Moi Rewardsen.wikipedia.org
Other
Metro announced that it would end participation in Air Miles at participating Ontario stores and replace the program with Moi Rewards.
2023
Unifor Local 414 strike affects Metro stores in the Greater Toronto Area[5]Metro宣布从Air Miles过渡到Moi Rewardsen.wikipedia.org
Other · Leadership change
Front-line workers at 27 Greater Toronto Area stores represented by Unifor rejected a tentative agreement and went on strike. The dispute focused on wages, job quality, job security and the cost of living. The strike ended after approximately one month with wage increases.
2020
Metro announces automated fresh and frozen distribution centre[5]Metro宣布从Air Miles过渡到Moi Rewardsen.wikipedia.org
Other
Metro announced a multi-year investment in an automated distribution centre intended to handle fresh and frozen products.
2019
Metro reduces its Reykjavík restaurant footprint[1]Metro (restaurant chain)en.wikipedia.org
Other
One Metro restaurant in Reykjavík closed, leaving two reported locations in Iceland at that time.
2018
Metro completes acquisition of Jean Coutu Group[5]Metro宣布从Air Miles过渡到Moi Rewardsen.wikipedia.org
M&A
Metro closed its acquisition of Quebec pharmacy retailer Jean Coutu Group, combining a major drugstore network with its food-retail operations.
2017
Metro acquires Miss Fresh[5]Metro宣布从Air Miles过渡到Moi Rewardsen.wikipedia.org
M&A · Product launch
Metro acquired Canadian meal-kit company Miss Fresh as part of an effort to broaden its food-offering and consumer-convenience capabilities.
2015
Metro temporarily substitutes pork for beef during meat shortages[1]Metro (restaurant chain)en.wikipedia.org
Other
Strikes at the Icelandic Veterinary Association contributed to meat shortages affecting restaurants, prompting Metro to use pork temporarily in its hamburgers.
2013
Metro is sold to M-Veitingar ehf.[1]Metro (restaurant chain)en.wikipedia.org
M&A
Metro changed ownership again when Lífs og heilsu ehf. sold the chain to M-Veitingar ehf. in January.
2011
Metro acquires a majority stake in Marché Adonis[5]Metro宣布从Air Miles过渡到Moi Rewardsen.wikipedia.org
M&A
Metro acquired a majority interest in Quebec specialty-food retailer Marché Adonis, strengthening its Mediterranean and ethnic-food offering.
2010
Metro is sold to Lífs og heilsu ehf.[1]Metro (restaurant chain)en.wikipedia.org
M&A
Lyst Hr. transferred Metro to Lífs og heilsu ehf. in June, separating the chain from debts associated with the former parent company.

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