What's a "Menu" and how is it different to the "Inventory"? If your game is ASCII, then it sounds like the menu could be used for pretty much everything, and as such I find the description a bit vague.
I found it helpful to have several game states, e.g. "main menu", "main game", "targeting mode", "inventory", all of which process input and render stuff to screen differently. E.g. pressing "i" while in "main game" makes a transition to "inventory", where you have other key shortcuts, and "Esc" sends you back to the "main game" mode. Each state can also track what windows (if you have a GUI) are rendered and take that into account while processing input. Your game can maintain a stack of game states, and start with e.g. "main menu". Then, when you make state transitions, you can push/pop the stack. Hitting the inventory key pushes the inventory state to the stack, and when you're done with the inventory, you pop it off the stack. Etc.