Gus Belt, a former U.S. Marine, started by converting his gas station and chicken restaurant into a hamburger stand. His guiding principle was "In Sight, It Must Be Right." To prove the quality of his "steakburgers," he would famously wheel a barrel of T-bone, sirloin, and round steaks into the restaurant and grind the meat right in front of his customers. This commitment to transparency and high-quality ingredients established the foundation of the brand and its iconic burger.

As the company expanded, it leaned into the popular culture of the 1950s by becoming a prominent drive-in. Carhop service was a defining feature of the early Steak 'n Shake experience. Customers would park their cars, and carhops would deliver their food on a tray that clipped onto the lowered car window. This model of curb service, complete with teenagers and families enjoying a meal from their vehicle, cemented Steak 'n Shake's status as a quintessential American drive-in.