If you're level 1 and there are no higher levels on who can help you then food is a real problem. The bakery is expensive and not filling. The only option I've found is to hunt fidos, but you have to be very careful because the town is crawling with Cityguards and Peacekeepers who attack on sight if you're caught fighting. You have to stalk the fidos, make sure no cops are in the adjoining rooms. As a Mage I hit them rapidly with two magic missiles. Maybe it's a waste of mana but you want them dead asap. Get their meat from their corpse. There's not much xp but there's food.
The best hunting ground for fidos is along Wall Road at the west edge of Midgaard proper. Also, just outside the west gate. So far I've never seen a Cityguard or Peacekeeper wander outside the gate.