From the St. Martin website:

The story behind “lolos” goes back to the 17th century and the days of colonization. It all began in the warehouses that were set up in the middle of plantations. Slaves and merchandise were stored there prior to being used or sold.
Over time, the slaves’ living quarters became whole districts. These districts gradually formed small villages. The warehouses remained and became local food outlets. Retailers used a sale unit called a “lot”. So the name of these outlets naturally evolved to “lolo”.