How Prohibition Played A Role In The Founding Of Steak 'N Shake

Thanks in part to Prohibition, which saw alcohol sales banned in the United States from 1920 to 1933, Steak 'n Shake has remained a lasting and influential part of fast-food culture. It began with Gus Belt and his wife, Edith, who originally operated a gas station called the Shell Inn in Normal, Illinois, that also sold food. They worked hard to offer customers good deals and lower prices during the Great Depression. After the Prohibition ended in 1933, some of these deals occasionally included free beer. At the time, the Belts sold a 14-ounce stein of beer, fried chicken, French fries, and pickles for just 25 cents (equivalent to $5.85 in 2024). However, beer was their biggest seller.

Even though Prohibition was over, Normal attempted to ban alcohol again in 1934. It was a big topic in town, and Gus had to act fast. He knew he couldn't just wait around and hope the ban would be lifted for good, so in 1934, he opened Steak 'n Shake, a friendly spot serving up steakburgers and jumbo shakes. The Belts also offered curb service, bringing food right to customers' cars. Gus made the right call. In 1935, the town banned alcohol again.

Gus Belt became a pioneer in selling steakburgers. He even ground the meat in front of customers to show them it was of high quality. His motto, which became the restaurant's slogan, was "In Sight, It Must Be Right." Belt's dedication to serving the best food in the most convenient way possible made him stand out and played a key role in Steak 'n Shake's early success.

Steak 'n Shake survived not only the Great Depression but also World War II. In 1945, it faced a nationwide meat shortage, which led to the restaurant temporarily serving grilled cheese sandwiches instead of burgers. What helped the business continue was Belt's ability to adapt to changing times, all while prioritizing customers, supporting the community, and taking care of his employees. After the war, Steak 'n Shake launched a program to hire veterans at a starting salary of up to $200 a month (around $2,800 in 2024). Belt also encouraged employees to engage in community efforts, such as participating in fundraisers and contributing to charitable organizations like the March of Dimes.

As Steak 'n Shake grew, expanding into Illinois, Indiana, and Arkansas, Belt bought a farm to produce beef, milk, and vegetables. The business continued to thrive after Belt's death in 1954, with locations opening across the United States and internationally.

Steak 'n Shake's burgers remain a favorite, coming in at No. 6  on our ranking of fast food burgers from worst to best, according to Reddit, and its shakes also appear our list of 16 unforgettable fast-food milkshakes. In 2015, food historian and burger expert Josh Ozersky called Steak 'n Shake's steakburger a "spectacular piece of work."