A towel that is used to cover your lap while eating and work in a PC, playing a video game, watching television etc. It is part bib, part washcloth, and keeps food off the furniture and your hands clean.
Damn that food towel came in handy while wolfing down that bucket of KFC and playing FFXI on my laptop.
Dufus, you got gravy all over the TV remote. Where the hell is your food towel!