Philadelphia’s Tax-Free Bagel Campaign
Gueadmin
- January 10, 2025

The primary objective of Philadelphia’s Tax-Free Bagel campaign was to address the bagel tax in New York City, which imposed an additional tax on sliced bagels with cream cheese. The campaign aimed to highlight Philadelphia Cream Cheese’s commitment to providing a delightful, tax-free experience for its customers.
Campaign Overview
Philadelphia Cream Cheese, in partnership with iconic NYC bagel shop H&H Bagels, launched the limited-edition Tax-Free Bagel. This full-sized, unsliced bagel was filled with smooth, creamy Philly cream cheese, circumventing the additional tax requirement. The campaign was timed to coincide with Tax Day, running from April 14 to April 18.
Problem
The problem was the bagel tax in New York City, which added an extra cost to bagels that were sliced and had cream cheese applied. This tax was seen as an unnecessary burden on consumers who simply wanted to enjoy their favorite bagel with cream cheese.
Execution
Philadelphia Cream Cheese executed the campaign by:
Creating the Tax-Free Bagel: Partnering with H&H Bagels to produce a full-sized, unsliced bagel filled with Philly cream cheese.
Marketing and Promotion: Promoting the Tax-Free Bagel through social media, press releases, and in-store promotions at H&H Bagels’ Manhattan locations.
Nationwide Availability: Offering the Tax-Free Bagel for national delivery through H&H Bagels’ website.
Engaging with Customers: Encouraging customers to share their experiences with the Tax-Free Bagel on social media using specific hashtags.
Brand Impact
The campaign had a significant positive impact on Philadelphia Cream Cheese’s brand:
Brand Awareness: The campaign generated widespread media coverage and social media buzz, increasing brand visibility.
Customer Engagement: The unique concept of a tax-free bagel resonated with consumers, leading to high engagement and positive customer feedback.
Brand Loyalty: The campaign reinforced Philadelphia’s commitment to customer satisfaction and its innovative approach to addressing consumer pain points.




Results
Philadelphia’s Tax-Free Bagel Campaign delivered outstanding results, achieving a 293% increase in nationwide sales. The campaign garnered 743 million impressions and generated $7.1 million in earned media, highlighting its significant impact and widespread reach.
Lessons Learned
Philadelphia learned several valuable lessons from the campaign:
Consumer-Centric Approach: Addressing a specific consumer pain point (the bagel tax) can lead to a highly successful campaign.
Partnerships: Collaborating with a well-known local brand (H&H Bagels) can enhance credibility and reach.
Timely Execution: Timing the campaign around a relevant event (Tax Day) can amplify its impact and relevance.
Social Media Engagement: Leveraging social media for promotion and customer engagement is crucial for modern marketing campaigns.