Everyone should note that the kitchen at Laugar Cafe usually closes at least an hour before the Cafe closes. I showed up at 4:50 on a Sunday afternoon hoping to get an early dinner. After a few minutes of waiting, the waitress appeared and brought food to another table, then approached our table and told us that it was now 5 PM and that the kitchen was closed. According to the clock on the wall, it was not quite 5. Furthermore, there was no sign posted in the restaurant saying that food stopped being served after 5 PM.
On the bright side, the prices for food appeared to be very reasonable (about 1300 ISK for a veggie burger or vegetarian noodle dish). There are many more vegetarian options on the menu in the restaurant than are listed on the website. There is a very large selection of cocktails made with fresh fruit juices (I ordered a drink that was made with mango juice, coconut rum and cinnamon syrup - yum!). The drinks are expensive (about 1500 ISK each) but that's pretty typical of alcohol in Iceland, so I can't complain about this place in particular.