That 4% fee for credit card usage has become common at US (at least NY State) restaurants.
The reasoning is that "they're passing on the bank interchange fee" that the credit card companies levy on them. Which is a post-COVID development. Until 2021 or so, merchants generally ate the interchange fees, but more or less subtly made it known that they'd prefer cash. One major exception being gasoline (petrol) stations, which have long offered a "discount" to those paying in cash.
If Smoke's food is good, the menu items that I (vegetarian) would eat are fairly reasonably priced by Manhattan standards.