The final ignominy has befallen the plucky/wildly over-leveraged island nation. Pizza Hut have announced that they're closing two of their three Reykjavik restaurants. McDonald's closed theirs earlier this year. Both companies blamed the collapse of the Icelandic economy.
In 2008 the nation's currency and three of its largest banks collapsed. Since then unemployment has risen, and so have foreclosures. Which means that people have no money, and that importing things — even the crappy ingredients for fast food — as the Icelandic Krona is worth less, has become very expensive.
A basic pizza at the Hut was about $17, according to the Los Angeles Times. As for McDonald's, Jon Gardar Ogmundsson, who owned the McDonald's franchise, told the BBC that for "a kilo of onion imported from Germany, I'm paying the equivalent of a bottle of good whiskey."
And no one ever got through their bankruptcy by downing onion after onion to numb the pain.