Coffee chain also plans to trial two more changes: a kids menu and a loyalty program.
Government plans to investigate allegations that owner Restaurant Brands International has failed to live up to promises made under the Investment Canada Act.
The move follows months of spats over everything from cost-cutting measures to a class-action lawsuit over the company's alleged improper use of a $700 million national advertising fund.
Tim Hortons recently faced an onslaught of negative publicity as some of its Ontario franchisees clawed back employee benefits to help offset the province's minimum wage hike
Refrigeration equipment is an essential part of many businesses. Unfortunately, it can also be one of their largest operating expenses.
The decision has generated more animosity between the chain and an unsanctioned franchisee group.
Complaint calls the incident "a failure" and noted that it comes "on the heels of the public relations debacle."
Sales slowdown comes as some Canadian Tim Hortons franchisees fight against what they say is their corporate parent's mismanagement of the coffee-and-doughnut chain.
Protests at restaurants across the country will include a Tim Hortons on Ottawa's Montreal Road.
Rallies came a day after a social media campaign urged patrons to take part in "No Timmies Tuesday" on Jan. 9 and instead visit independent coffee shops.