Sandholt bakery is regarded as one of the best bakeries in Iceland and is an important part of the Sandhotel community.

Sandholt opened on the street floor of one of the houses in 1920 and is still run by the same family of bakers. The bakery and café, which is popular with the locals, will offer guests of Sandhotel varieties of breads and cakes, ice cream and confectionery. With the focus on delivering the best possible quality to customers. The bakery only uses fresh eggs and authentic butter in their products and avoids taking shortcuts and using methods of mass productions.