'Layover allowances' are meal allowances. As has been mentioned, based on the discount that has been negotiated by the 'logistics and procurement' department. There are some places where the timings preclude availing of the often good value breakfast so while £5 for a slap up brekkie is great value, you might not want that at 8am after being up all of the previous night. Also, the majority of places alcohol is excluded from the discount so if you want to eat in the hotel to take advantage of the discounted meals, you'll be paying top dollar if you want to wash it down with a glass or two of vino.
Having said that, Flight crew will often get lounge access and this will include breakfast even though you still collect the allowance. Asian destinations often extend that to evening food and alcohol so despite the usual moaners on here, Flight crew often do ok financially....believe me. Further more, despite the negativity, NEVER in my 14+ years have I ever gone home without some cash in my pocket, as long as It isn't spent on anything other than food and drink (non alcoholic). If someone can't survive for 24 hours, even on £47, then they have friggin expensive tastes. Unlike other airlines, EK's meal allowance is just that, an allowance to COVER food while you're down route. It's not a salary enhancer.......
For what it's worth, my UK & European trips will often keep me fed and watered and enough groceries to keep the kids happy and the missus away from Spinneys for a few days!
Harry