You can either eat quite cheaply or very expensively:
1. Fast food places - there's a Burger King, fish and chip shop, pasta and pizza places etc. Therse were all relativley cheap but not particularly tasty (deep fried to death). 2. Several of the main hotels (Torshavn, Faroyar, Hafnia) have restaurants. These are all quite pricey and you'll probably feel a little bit ripped off. Merlot had some excellent food but not even their lamb was local. Maybe best to eat out at lunchtime and go cheap in the evening. Could always try self catering...
At lunchtime, a couple of the hotels do a eat as much as you want buffett. Hotel Hafnia seemed to be the best. For around £10 we had some excellent food.
After Finding Most restaurants prices in Torshavn obscenely expensive - we ventured into the visible but hardly publicised Marco Polo. Nice and Elegant fisherman's Inn atmosphere, and comparatively reasonable prices.
The scallop soup was lovely: creamy and aromatic. We were p;eased with the whole meal in general.