Issues around the closure of the lone food truck in Thimphu

The recent closure of a legally operating food truck business in Kuensel Phodrang, Thimphu by the Dzongkhag Administration has raised public concern, particularly over its impact on young entrepreneurs and employees who are now left without work.

The business, which was run by young entrepreneurs who had invested Nu 3 million (mn) of their savings, employed five staff members who are now reportedly unemployed. Some of those affected are struggling to pay rent, and a few are considering seeking jobs overseas for financial stability.

In response to the concern that such actions could undermine efforts to reduce youth unemployment and fuel youth migration, the Minister of Industry, Commerce and Employment clarified that the closure was not abrupt.

According to the ministry, the food truck had initially received location clearance under the former Dzongda and operated for five years. After the clearance expired, the Dzongkhag consulted with stakeholders and explained to the operator on two to three occasions that to continue, the business would need to shift to a permanent structure like other restaurants.

The ministry noted there is no specific law requiring food truck licensing. Following discussions, stakeholders agreed not to allow new food trucks due to reasons including waste management challenges, underutilized commercial buildings, law and order concerns from gatherings late at night, and the need to support fair competition rather than a monopoly.

The ministry also stated that its regional trade office is looking into the matter, as it came to their attention only recently.

Regarding support for young entrepreneurs, the ministry highlighted ongoing initiatives such as the Jabchor 2 financing initiative, Startup Centers, business incubation programs under RUB colleges, and FabLab. Other national programs, like the Youth Engagement and Livelihood Program, National Reintegration Program, and Employment Responsibility System aim to connect jobseekers with opportunities, promote skill development, and support entrepreneurship. The ministry also continues to provide labor market data, career guidance, and practical training to help young people make informed career choices.