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a better, more refined manner of saying goodbye, especially to a close friend or loved one.

referring to the only slightly tasty condiment, the phrase is generally believed to have been invented by Timothy Walker in the state of New York sometime near the turn of the century.
Devon: "peace out 'kraut, as in sauerkraut"

Tim: "Oh nice, peace out sauerkraut, that's my phrase, i made that up"

Devon and Valentina: "no you did not"

Tim: "this is bullass."
by Studs McGee March 26, 2009
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