Agent47 is correct. menu.txt is intended to create a list of collections, not a list of games. In order to create a list of games you require the following:
1. The correct path (can be the default path) and extension settings in the settings.conf of your collection.
2. A corresponding XML file in the meta/hyperlist directory for the extra information like year, manufacturer, etc. (if you want that information shown by RetroFE)
3. The roms in the path you specified (can be the default roms path).
For more options, please read the manual.