The French striker was snapped up for £55m from Lyon.
But Wenger has used him relatively sparingly and Lacazette has only played 90 minutes once this season.
The Gunners ground out a 0-0 draw with Chelsea at Stamford Bridge yesterday.
Lacazette, however, was withdrawn after just an hour on the pitch.
“Alexandre Lacazette is clearly a talented player but Arsene Wenger must be careful how he uses him,” Cascarino told The Times.
“He was substituted after 66 minutes yesterday, replaced by Alexis Sanchez, having had little chance to impose himself.
“He was also taken off against Bournemouth and Stoke and didn’t even come off the bench at Liverpool.
“It’s very easy to have a negative impact on a striker’s confidence and the Frenchman might be at a stage where he’s going out after half-time thinking ‘If I don’t score in the next ten minutes then I’ll be off’.
“I was taken off a lot and it hits your confidence. Lacazette cost over £50m and is meant to be a star. So treat him like one.
“I’m not sure Thierry Henry would have been taken off with Arsenal 0-0 at Chelsea.”
Arsenal face League One side Doncaster in the Carabao Cup on Wednesday.
