No. Dogs are being taken away (according to one source) but not because they can be consumed.
The Daily Mail make it seem like all 'decadent' dogs are being taken from all over North Korea to help with food shortages. The original source states that only the elite in Peongyang have to hand over the dogs because of the bad optics.
The Daily Mail references this article by South Korea's Chosun Ilbo newspaper.
From the article (emphasize mine):
North Korea has launched a clampdown on the ownership of pet dogs among the Pyongyang elite as food supplies run short.
Trumpeted as protecting the country against capitalist "decadence," the move appears aimed at appeasing increasing public discontent amid the dire economic situation.
The article states that the measure is to appease discontent instead of feeding the people. Note that dogs are only owned as pets by the elite and not the general public.
The article continues (emphasize mine):
Some of the dogs are sent to state-run zoos or sold to dog meat restaurants, the source added.
Apparently not all dogs are being consumed, instead they are sent to zoos.
The article also details how owning dogs is a status symbol in North Korea, and flaunting a luxury such as this appears to be forbidden now that there is a food shortage.
Searching for recent news articles on "North Korea dogs -Daily -Chosun" didn't result in any other news articles that didn't either reference the Chosun Ilbo or the Daily Mail. So it seems that Chosun is the original source of this story.