High profile Wellington café Prefab is ceasing operations immediately and staff have been given notice of redundancy.

Delta level 2 has proven too restrictive for Prefab to re-open. Under the rules there is a limit of 50 people at hospitality and event venues, while outdoor venues can have up to 100 people.

Prefab Eatery, the 180 seater flagship café for the ACME brand, was founded in 2013 by Jeff Kennedy and Bridget Dunn.

The Herald understands staff have been told this week the decision has been made to cease Prefab café operations immediately and all café positions would be redundant.

New Zealand Herald Reporter Georgina Campbell breaks the story on Wellington Mornings.