For a city I guess it's OK. I'm not really a price watcher when abroad but I reckon I've paid stg£8+ in London and 10 bucks for a pint (excluding gratuity) is probably cheapish in New York. I did notice many shops/restaurants (particularly around the Wall St / Financial district) in NY have distinct cash and card prices, cash being lower. One restaurant bill I got, for example, was $436 cash or $453 card including 20% pre-loaded gratuity.
The problem from our trade's point of view is that we're forcing Temple Bar rates nationwide which obviously has a negative effect on demand outside of the big cities.