According to the newspaper, the Little Chef brand could disappear as the Top 50 Indie is likely to replace it with its partner brands which include Starbucks, Subway, Greggs, Burger King and KFC.
Little Chef is owned by the Kout Food Group, which bought the chain in 2013 for £15m.
At its peak in 2000 there were 450 Little Chefs, and in 2009 celebrity chef Heston Blumental was involved in an attempt to revamp the ailing brand, but that number has now dwindled to 70.
The newspaper claimed a source said: “The Little Chef employees have been informed.
“All the assets from Little Chef will be transferred to Euro Garages and all their terms and conditions will remain the same – meaning they will still be employed in their current roles.
“Staff are worried that Euro Garages don’t operate their own brands – they only operate partner brands. They fear this could mean the end for what is an iconic brand.”