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Mug-n-Bun

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A historic drive-in restaurant in Speedway, Indiana, known for homemade root beer, pork tenderloin sandwiches, onion rings, and classic American diner food.

Last updated August 24, 2026

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Overview

Mug-n-Bun is a long-running drive-in restaurant in Speedway, Indiana, a town closely associated with the Indianapolis Motor Speedway and the Indianapolis 500. The business began in 1956 as a Frostop drive-in and adopted the Mug-n-Bun name in 1960. It is regarded as the oldest continuously operating drive-in restaurant in Marion County. Its format combines traditional carhop service with patio seating, indoor dining, and takeout service, preserving a mid-century American roadside-restaurant experience while operating as a contemporary local business. The restaurant is associated with Midwestern comfort food and informal American diner fare. Its best-known offerings include homemade root beer, a large pork tenderloin sandwich, hand-cut and hand-dipped onion rings, hamburgers, coney dogs, fried chicken, fried shrimp, fried catfish, French fries, fried pickles, corn nuggets, milkshakes, and ice cream floats. The pork tenderloin is a particularly distinctive regional specialty: a thinly pounded, approximately one-pound cutlet served on a small hamburger bun with pickles and mustard. Additional toppings such as lettuce and tomato are treated as optional extras under the restaurant's colloquial “Hoosier Tax” label. Root beer is produced on site and is also sold in quart-sized souvenir cups. Mug-n-Bun also operates a pizzeria behind the main drive-in under the Mug-n-Bun Pizza name. The secondary operation serves pizza and fried chicken dinners, extending the business beyond its original drive-in menu. Customers can eat in their vehicles, order from carhops, use the restaurant patio, dine in the indoor room, or collect food directly from servers. In the carhop system, customers park in a designated space, switch off their vehicles, and turn on their headlights to signal that they are ready to order; patio customers use a table button to summon service. Jay Watson acquired the restaurant after retiring from electrical work in 1998. After taking ownership, he renovated an adjacent property into an indoor dining room so the business could serve customers during the coldest and hottest parts of the year. The renovation reportedly cost $60,000 and was completed by Watson himself. The restaurant historically operated on a cash-only basis for five decades, but began accepting credit and debit cards in January 2010. The change was reported to have increased sales by 10 percent, although servers continued to receive tips in cash or through digital payment services. The business has maintained a strong local identity and benefits from its proximity to Indianapolis 500 festivities, although it is closed on race day itself. During the COVID-19 shutdown, it continued carhop service as an essential business. Operational changes included mask use by employees, suspension of beverage refills, and discontinuation of the practice of attaching food trays to vehicle windows. Mug-n-Bun has received recognition from local and national food media. Thrillist included it among Indianapolis's essential restaurants in 2015. In 2018, The Indianapolis Star recognized Mug-n-Bun Pizza among the top restaurants in Speedway and described the drive-in's root beer and onion rings as iconic Indianapolis 500 foods. The restaurant was also featured on Man v. Food, where host Casey Webb attempted but did not complete the signature pork tenderloin challenge. Reported notable customers include Jimmy Fallon and members of the Andretti family. In January 2023, Watson announced that the business was being offered for sale, but the referenced material does not establish whether a sale was completed.

History

Mug-n-Bun traces its roots to a drive-in restaurant that opened in 1956 in Speedway, Indiana, under the Frostop name. In 1960, the business changed its name to Mug-n-Bun. The restaurant retained the defining characteristics of the classic American drive-in: vehicle-based ordering, carhop delivery, informal food, and a strong emphasis on beverages and quick service. Over time, it became a recognized local institution and is described as the oldest operating drive-in restaurant in Marion County. The restaurant's development reflects both continuity and adaptation. Its original identity was built around Midwestern staples, homemade root beer, sandwiches, fried foods, and a casual roadside setting. Customers could order from their parked cars, eat on site, or take food away. The business later added patio seating and an indoor dining room, allowing it to operate more comfortably through Indiana's seasonal extremes without abandoning the drive-in format. Jay Watson became the owner in 1998 after retiring from a career as an electrician. Following the acquisition, he renovated an adjacent property into a dining room. The reported renovation cost was $60,000 and was completed by Watson himself. This change addressed the restaurant's previous seasonal limitations, when it did not remain open during the coldest winter months. Watson's ownership period also included modernization of payment practices. After roughly five decades of cash-only operation, Mug-n-Bun began accepting credit and debit cards in January 2010. The change was associated with a reported 10 percent increase in sales. Mug-n-Bun's menu has remained rooted in regional and classic American food. Its pork tenderloin sandwich, onion rings, and house-made root beer became signature items, while hamburgers, coney dogs, fried chicken, fried seafood, fries, desserts, and shakes broadened the offer. The restaurant also developed Mug-n-Bun Pizza, an onsite pizzeria located behind the main drive-in. The pizza operation added pizza and fried chicken dinners and gave the business a second food-service identity while remaining connected to the original brand. The restaurant's proximity to the Indianapolis Motor Speedway has made it particularly visible during Indianapolis 500-related activity. It is a popular destination during race festivities, but the business closes on the day of the race. Media coverage has emphasized its affordability, regional character, nostalgic service model, and distinctive food. Recognition has included inclusion on Thrillist's list of essential Indianapolis restaurants, local newspaper recognition for Mug-n-Bun Pizza, and descriptions of its root beer and onion rings as iconic Indianapolis 500 foods. Mug-n-Bun also adapted its service model during the COVID-19 shutdown. It continued carhop service as an essential business while introducing health and operational precautions, including face masks for staff, no beverage refills, and the removal of trays traditionally attached to car windows. In January 2023, Watson announced that the business was being marketed for sale at an asking price of $2.1 million. The available reference does not establish a completed ownership transfer, so Watson is retained here as the reported current owner. The restaurant remains an active example of the surviving American drive-in, combining a historic format with indoor dining, takeout, digital payments, and an adjacent pizza operation.

  • 2023

    Announced a proposed sale

    [1]

    Jay Watson announced that the business was being offered for sale.

  • 2020

    Maintained carhop service during the pandemic

    [1]

    The restaurant continued carhop operations with modified service and employee health precautions during COVID-19 restrictions.

  • 2018

    Received local food-media recognition

    [1]

    The Indianapolis Star recognized Mug-n-Bun Pizza among Speedway's top restaurants and highlighted the drive-in's root beer and onion rings.

  • 2015

    Recognized by Thrillist

    [1]

    Thrillist included Mug-n-Bun among Indianapolis's essential restaurants.

  • 2010

    Introduced card payments

    [1]

    Mug-n-Bun ended approximately five decades of cash-only operation by accepting credit and debit cards.

  • 1998

    Jay Watson acquired the restaurant

    [1]

    Retired electrician Jay Watson became the owner and later renovated an adjacent property into an indoor dining room.

  • 1960

    Adopted the Mug-n-Bun name

    [1]

    The drive-in changed its name from Frostop to Mug-n-Bun.

  • 1956

    Opened as a Frostop drive-in

    [1]

    The restaurant began operating in Speedway, Indiana, under the Frostop name.

Products and positioning

Traditional Midwestern drive-in and casual restaurant centered on nostalgic carhop service, regional comfort food, homemade root beer, and Indianapolis-area cultural identity.

  • Sandwich

    Pork tenderloin sandwich

    A signature regional specialty consisting of a very large, thinly pounded pork tenderloin served on a comparatively small hamburger bun with pickles and mustard. Additional toppings, including lettuce and tomato, are available as extras under the restaurant's informal “Hoosier Tax” wording.

  • Beverage

    Homemade root beer

    Root beer made on site and associated with a mild vanilla character. It is served with meals, used in floats, and sold in quart-sized souvenir plastic cups.

  • Side dish

    Hand-cut onion rings

    Hand-cut and hand-dipped onion rings that have become one of Mug-n-Bun's most recognized menu items and one of the foods associated with the Indianapolis 500 dining scene.

  • Fast food

    Classic drive-in menu

    The broader menu includes hamburgers, coney dogs, fried chicken, fried shrimp, fried catfish, French fries, fried pickles, corn nuggets, milkshakes, and ice cream floats, reflecting Midwestern and classic American diner cooking.

  • Pizza restaurant

    Mug-n-Bun Pizza

    An onsite pizzeria operating behind the main drive-in. It serves pizza and fried chicken dinners, giving the brand an additional casual-dining format alongside its original carhop operation.

Marketing campaigns

  • 2018Man v. Food feature

    United States

    Mug-n-Bun appeared on the television food-travel program Man v. Food, with host Casey Webb attempting the restaurant's large pork tenderloin challenge.

    Outcome. Webb did not finish the sandwich within the allotted time, giving the restaurant's signature item additional national television exposure.

Brand decisions

  • 2023

    Announced the business was for saleM&A

    Background

    After more than two decades of Jay Watson's ownership, the restaurant was placed on the market.

    Action taken

    Watson announced a proposed sale and listed the business at an asking price of $2.1 million.

    Aftermath

    The available reference does not confirm whether the sale was completed or whether ownership changed.

    Asking price. $2.1 million (January 2023 listing)

  • 2020

    Modified service during COVID-19 restrictionsStrategy

    Background

    Public-health restrictions disrupted normal restaurant operations during the COVID-19 shutdown.

    Action taken

    Mug-n-Bun continued carhop service, required staff to wear masks, stopped beverage refills, and discontinued attaching food trays to car windows.

    Aftermath

    The restaurant maintained a reduced-contact version of its traditional drive-in service.

  • 2010

    Accepted credit and debit cardsStrategy

    Background

    Mug-n-Bun had operated as a cash-only restaurant for approximately 50 years.

    Action taken

    The restaurant introduced credit and debit card payments while continuing to handle server tips through cash and digital payment services.

    Aftermath

    The change was reported to have increased sales by 10 percent.

    Reported sales increase. 10% increase (After card acceptance began in January 2010)

  • 1998

    Added indoor dining capacityStrategy

    Background

    Before the ownership change, the restaurant was not open during the coldest winter months and primarily operated through its drive-in format.

    Action taken

    After acquiring the business, Jay Watson renovated an adjacent property into a dining room for use during extreme hot and cold weather.

    Aftermath

    The renovation broadened the restaurant's usable service environment while preserving its carhop and drive-in identity.

    Renovation cost. $60,000 (After the 1998 acquisition)

Recent events

  • 2023

    Mug-n-Bun offered for sale[1]

    M&A

    Owner Jay Watson announced that the restaurant was being offered for sale. The available reference does not confirm whether the transaction was completed.

  • 2020

    Mug-n-Bun continues carhop service during COVID-19 shutdown[1]

    Regulation · Other

    The restaurant remained open for carhop service while other operations were restricted. Employees wore masks, beverage refills were suspended, and food trays were no longer attached to car windows.

  • 2018

    Mug-n-Bun featured on Man v. Food[1]

    Campaign

    The restaurant appeared on Man v. Food, where host Casey Webb attempted to finish its large pork tenderloin sandwich challenge but did not complete it within the allotted time.

  • 2010

    Mug-n-Bun begins accepting credit and debit cards[1]

    Other

    After operating as a cash-only restaurant for approximately 50 years, Mug-n-Bun began accepting credit and debit cards. The change was reported to have increased sales by 10 percent.

Sources1 sources

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