it is letting you know how much food is in that container of food your thinking about eating. 1 serving size=1 cup. 1 cup=8oz. Therefore, that bag of chips your eating has 2 servings, meaning enough for 2 people to eat according to the container of food. Say, there is 40 potato chips in that bag,your wanting to eat. So it's enough for 2 people to have 20 chips each. people who are dieting or who just want to loose weight, or people who are watching what they eat like to read and watch what they are eating by reading the label.